Please answer the following questions and explain as to why they are correct:
1.
LTI Corp. purchased 500 shares as a short-term investment for $5,100 on January 4. The company received a 100% stock dividend on November 30. The market value of one share on December 31 was $6.30. The carrying value per share as at December 31 would be O A. $10.20 O B. $6.30 O C. $5.10 O D. $3.15On September 1, 2020, Jacob Lid. purchased 100,000 common shares for a 15% interest in BlueSky Drilling Corporation for $15 per share, and paid a $7,000 brokerage commission for the purchase. Jacob Lid. intends to hold this investment for several years and does not have significant influence over BlueSky Drilling. The market value of the BlueSky Drilling shares at December 31, 2020, is $19 per share. On February 15, 2021 BlueSky Drilling distributed a total dividend to its shareholders of $50,000. Jacob Lid. sold one-half of the shares on June 30, 2021 for $16 per share. Which of the following is the correct journal entry on June 30, 2021 to record the sale of shares? Cash 800,000 O A. Loss on Sale of Long-Term Investments 150,000 Fair Value Valuation Allowance 200,000 Long-Term Investments 750,000 Cash 800,000 O B. Loss on Sale of Short-Term Investments 150,000 Fair Value Valuation Allowance 200,000 Short-Term Investments 750,000 Cash 800,000 O C. Loss on Sale of Long-Term Investments 145,000 Long-Term Investments 945,000 Cash 800,000 OD. Loss on Sale of Investment 145,000 Investment in BlueSky Drilling Common Shares 945,000On January 2, 2020, Didek Corporation purchased 30% of the outstanding shares of Sim Corporation for $500,000. Net income reported by Sim Corporation for 2020 and 2021 was, respectively, $90,000 and $130,000. Dividends paid by Sim Corporation during 2020 and 2021 were, respectively, $30,000 and $45,000. Didek Corporation has representation on the board of directors for Sim Corporation. The investment in common shares account will appear on Didek Corporation's December 31, 2021, balance sheet at O A. $575,000 O B. $500,000 O C. $543,500 O D. $566,000If a parent company and its 100% owned subsidiary have accounts receivable from external sources in the amounts of $35,000 and $10,000, respectively, the consolidated balance sheet for the parent and its subsidiary will show O A. both amounts, but it will list them in two separate accounts to help investors better understand the nancial statements O B. only the parent's account receivable balance O c. net accounts receivable of $25,000 O D. one accounts receivable balance of $45,000 Suppose a Canadian company sold merchandise to a British rm for 100,000 British pounds. Assume the exchange rates for the British pound were as follows: Date of sale: $2.35 Date of collection: $2.34 What was the exchange rate gain/loss for the Canadian company on this transaction? 0 A. $3,000 gain 0 B. $2,000 gain 0 C. $1,000 loss 0 D. $3,000 loss
