Question
On 1 July 2019 ABC Ltd acquired 50 000 shares in DEF Ltd at a price of $20 each. There were brokerage fees of $1000.
On 1 July 2019 ABC Ltd acquired 50 000 shares in DEF Ltd at a price of $20 each. There were brokerage fees of $1000. The closing market price of DEF Ltd shares on 30 June 2020 which is the entitys financial year end was $24. ABC Ltd has not made the election to account for its equity investments at fair value through Other Comprehensive Income.
Required:
Prepare the relevant journal entries for ABC Ltd to account for the investment in DEF Ltd using fair value through profit or loss.
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
8th Edition
9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292
