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*PLEASE SHOW ALL WORK AND STEPS TO HOW YOU ARRIVED AT THE ANSWER* Question 1, Part 1 Following is a summary of the investments owned
*PLEASE SHOW ALL WORK AND STEPS TO HOW YOU ARRIVED AT THE ANSWER*
Question 1, Part 1 Following is a summary of the investments owned by Sage Corporation, as of January 1, 2017: Percentage of outstanding Shares Sage's Intention Investment 8% To be sold when prices increase STG Corporation Brach Ltd. Buy additional shares to achieve control of company. 34% Sage has members on Brach's Board of Directors. 1% To be sold when prices increase Raptor Inc. CMP Ltd. 28% Hold indefinitely. Another company owns the remaining 72% of shares Diloph Inc. 7% Hold indefinitely During 2017, the various companies paid dividends at various times throughout the year, as follows: Sage's Share of Dividends Investment $6,550 STG Corporation Brach Ltd. 26,100 2,580 Raptor Inc. CMP Ltd. 20,300 Diloph Inc 5,200 (al) Z Your answer has been saved and sent for grading. For each of the investments, indicate which accounting model is most applicable, based on the information provided and assuming Sage follows IFRS. Sage's Share of Dividends Investment STG Corporation FV-OCI Brach Ltd. Equity method Raptor Inc. CMP Ltd. FV-NI Diloph Inc FV-NI or FV-OCIStep by Step Solution
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