Problem 15-6B Accounting for share investments LO4 CHECK FIGURE: 2. Carrying value per share, $19.63 River...

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Problem 15-6B Accounting for share investments LO4 CHECK FIGURE: 2. Carrying value per share, $19.63 River Outdoor Supply Corporation (River Corp.) was organized on January 2, 2023. River Corp. issued 50,000 common shares for $250,000 on that date. The following investment transactions and events subsequently occurred: Jan. 2023 12 River Corp. acquired 12,000 shares of Turner Ltd. at a cost of $250,000 (including transaction fees of $50). This investment represented 24% of Turner's outstanding shares. Mar. 31 Turner Ltd. declared and paid a cash dividend of $1.00 per share. Dec. 31 Turner Ltd. announced that its profit for 2023 was $125,000. 15 Turner Ltd. declared and paid a cash dividend of $0.80 per share. Aug. 2024 Dec. 31 Turner Ltd. announced that its loss for 2024 was $95,000. 2025 Jan. 6 River Corp. sold all of its investment in Turner Ltd. for $230,000 cash. Assume that River Corp. has significant influence over Turner Ltd. with its 24% share. Required 1. Give the entries to record the preceding transactions in River Corp.'s books. 2. Calculate the carrying value per share of River Corp.'s investment as reflected in the investment account on January 1, 2025. 3. Calculate the change in River Corp.'s equity from January 12, 2023, through January 6, 2025, resulting from its investment in Turner Ltd. Problem 15-6B Accounting for share investments LO4 CHECK FIGURE: 2. Carrying value per share, $19.63 River Outdoor Supply Corporation (River Corp.) was organized on January 2, 2023. River Corp. issued 50,000 common shares for $250,000 on that date. The following investment transactions and events subsequently occurred: Jan. 2023 12 River Corp. acquired 12,000 shares of Turner Ltd. at a cost of $250,000 (including transaction fees of $50). This investment represented 24% of Turner's outstanding shares. Mar. 31 Turner Ltd. declared and paid a cash dividend of $1.00 per share. Dec. 31 Turner Ltd. announced that its profit for 2023 was $125,000. 15 Turner Ltd. declared and paid a cash dividend of $0.80 per share. Aug. 2024 Dec. 31 Turner Ltd. announced that its loss for 2024 was $95,000. 2025 Jan. 6 River Corp. sold all of its investment in Turner Ltd. for $230,000 cash. Assume that River Corp. has significant influence over Turner Ltd. with its 24% share. Required 1. Give the entries to record the preceding transactions in River Corp.'s books. 2. Calculate the carrying value per share of River Corp.'s investment as reflected in the investment account on January 1, 2025. 3. Calculate the change in River Corp.'s equity from January 12, 2023, through January 6, 2025, resulting from its investment in Turner Ltd.

Answer rating: 100% (QA)

Solution Given Information 1 River Corp acquired 12000 shares of Turner Ltd at a cost of 250000 2 This investment represents 24 of Turners outstanding ... View the full answer