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Pina Colada Inc. acquired 10% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $923,400 for 51,300 shares,
Pina Colada Inc. acquired 10% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $923,400 for 51,300 shares, and is equal to 10% of Gregson's carrying amount. Gregson declared and paid a $0.85 per share cash dividend on June 15 and again on December 15, 2020. Gregson reported net income of $500,000 for 2020. The fair value of Gregson's shares was $22 per share at December 31, 2020. Pina Colada is a public company and applies IFRS. Prepare the journal entries for Pina Colada for 2019 and 2020, assuming that Pina Colada cannot exercise significant influence over Gregson. The investment is accounted for using the FV-OCI model. (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 Ofor the amounts.) Date Account Titles and Explanation Debit Credit $ $ CA Other comprehensive income:
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