Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On June 30, 2021, Hawks Inc. purchased 200 shares of Kwah Inc. for trading purposes, paid $30 per share less a $120 commission. On December

On June 30, 2021, Hawks Inc. purchased 200 shares of Kwah Inc. for trading purposes, paid $30 per share less a $120 commission. On December 1, 2021, company sold 80 shares at $24 per share. On December 15, 2021, Kwah Inc. declared and paid a dividend of $3 per share. What is the amount of dividends income and gain/(loss) on disposal of investment to be included in net income on December 31, 2021. The company follows IFRS and uses the FVTPL method on this investment. Question 3Answer a. Dividend income: $600; loss on disposal $600 b. Dividend income: $360; loss on disposal $600 c. Dividend income: $600; loss on disposal $1,200 d. Dividend income: $360; loss on disposal $480 e. Dividend income: $600; loss on disposal $480

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Solution for Hawks Inc Investment in Kwah Inc following IFRS and FVTPL Dividend Income Hawks Increce... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions

Question

What are five dimensions of feasibility study?

Answered: 1 week ago

Question

1. Let a, b R, a Answered: 1 week ago

Answered: 1 week ago