Question
Michael Ltd. reported following transactions and information regarding the common shares of Mitchell Company: March 1, 2020: Purchased 50,000 shares at $26.75 plus $12,000 commission.
Michael Ltd. reported following transactions and information regarding the common shares of Mitchell Company:
| March 1, 2020: | Purchased 50,000 shares at $26.75 plus $12,000 commission. |
| December 31, 2020: | The fair value was $24.75 per share. |
| July 15, 2021: | Sold 50,000 shares at $30.50 per share minus $17,000 commission. |
Michael Ltd. classified the shares as an FV-NI (fair-value-through-NI) investment. Michael Ltd. has a December 31 year-end. How much gain / loss should Michael Ltd. report on July 15, 2021?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
