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.
Required:
Prepare the relevant journal entries for ABC Ltd to account for the investment in DEF Ltd using fair value through other comprehensive income.
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Edition
0471347744, 978-0471347743
