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On August 1, 2018, Marx Ltd. purchased 900 Datawave Inc. common shares for $46,200 cash with the intention of trading the shares and using the
On August 1, 2018, Marx Ltd. purchased 900 Datawave Inc. common shares for $46,200 cash with the intention of trading the shares and using the fair value through profit or loss model. Datawave declared a dividend of $1 per common share, which Marx received on December 28, 2018. On December 31, 2018, Marx's year end, the shares' fair value was $50,500. Assume that the shares were sold on February 1, 2019. Record the sale under two different assumptions: (a) the shares sold for $48,300, and (b) the shares sold for $45,500. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Date Account Titles and Explanation Debit Credit (a) Feb. 1 (b) Feb. 1
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