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Prepare all relevant journal entries related to Sarasota's investment in Martz for 2 0 2 3 and 2 0 2 4 , if you were
Prepare all relevant journal entries related to Sarasota's investment in Martz for and if you were told that Martz's
statement of comprehensive income included a loss from discontinued operations of $net of taxCredit 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 O for the amounts. List all debit entries before credit entries.
Account Titles and Explanation
Debit
Credit
:
To record investment purchase
To record collection of dividend
To record investment income
To record amortization of fair value difference
:
To record investment income
To record amortization of fair value difference
On January Sarasota Corporation purchased of the common shares of Martz Limited for $ Martz shares are not
traded in an active market. The carrying amount of Martz's net assets was $ on that date. Any excess of the purchase cost
over Sarasota's share of Martz's carrying amount is attributable to unrecorded intangibles with a year life. During the year, Martz
earned net income and comprehensive income of $ and paid dividends of $ The investment in Martz had a fair value of
$ at December During Martz incurred a net loss and comprehensive loss of $ and paid no dividends. At
December the fair value of the investment was $ and the recoverable amount was $ Assume that Sarasota
follows IFRS.
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