Question
Marsland Inc. completed these long-term investment transactions during 2020. Disregard commissions. Jan. 14 Purchased 1,000 shares of Crew Ltd., paying $41.00 per share. Aug. Jan.
Marsland Inc. completed these long-term investment transactions during 2020. Disregard commissions.
Jan. 14 Purchased 1,000 shares of Crew Ltd., paying $41.00 per share.
Aug.
Jan. 22 Received a cash dividend of $3.28 per share on the Crew Ltd. shares.
Dec.
Jan. 31 Adjusted the Crew Ltd. investment to its current fair value of $50,750.
- Journalize Marsland's investment transactions. Explanations are not required. Marsland Inc. exerts no significant influence on Crew Ltd. and intends to hold the investment indefinitely.
- What value is reported for the investment on Marsland's balance sheet at December 31, 2020?
hint: 2 Accounting for a long-term investment's unrealized gain or loss
1. Dec. 31, 2020, unrealized gain, $9,750
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
