Question
On May 8, 2020Prosperous Company, a company that follows IFRS, purchases 30,000 common shares of Poly Sask Co. at a total cost of $600,000. The
On May 8, 2020Prosperous Company, a company that follows IFRS, purchases 30,000 common shares of Poly Sask Co. at a total cost of $600,000. The investment is accounted for under the fair value through other comprehensive income (FV-OCI) without recycling model On December 31, 2020, the market price for each common share of Poly Sask Co. is $21. Prosperous sells the Poly Sask Co. shares on March 4, 2021 for $22 per share. Prosperous Company has a December 31 year end. Required: Prepare the journal entries for Prosperous Company's investment in Poly Sask Co. for 2020 and 2021
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