Question
Question #1 30 marks 1. Consider the following data for intercorporate investments: Year Shares purchased (sold) Price/share Price/share Jan 1 Dec 31 20x1 220 $74
Question #1
30 marks
1.
Consider the following data for intercorporate investments:
| Year | Shares purchased (sold) | Price/share | Price/share |
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| Jan 1 | Dec 31 |
| 20x1 | 220 | $74 | $62 |
| 20x2 | (85) | 58 | 77 |
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All sales and purchases are assumed to occur on January 1. Price may vary from price on previous day (December 31).
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| 20x1 | 20x2 |
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| Investee eps | $7 | $8 |
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| Investee dps | 4 | 4 |
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Investee eps (earnings per share); Investee dividend per share (dps)
Consider Trading, and the Equity method for classifying investment
Required:
a. Show the B/S carrying amount for each of the 2 years if the investment is classified as TRADING, and EQUITY METHOD (Show calculations) (7 marks)
20X120X2
TRADING
EQUITY-method
b. Show the total income recognized for each of the 2 years if the investment is classified as TRADING, and EQUITY METHOD(Show calculations)(11marks)
20X120X2
TRADING
EQUITY-method
2.
Pension information:
Current salary$40,000
Years until retirement3
Annual compensation increases5%
Discount rate10%
Benefit2%
Required:
Construct the pension table. (12 marks).
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Frauds Of The Past Lessons For The Future A Student Led Journey Through The World Of Auditing
Authors: Dr. Manjari Sharma, Mr. Pragadeesh SP, Mr. Sivanaresh A
1st Edition
B0CGKRP289, 978-6206753247
