Question

At December 31, 2020, the equity investments of Bramble Inc. that were accounted for using the FV-OCI model without recycling were as follows:

Investment Cost and Carrying Amount Fair value Unrealized gain/loss

Ahn Inc. $175,500 149,800 (25,700)

Burnham Corp. $122,600 140,100 17,500

Chi Ltd. $73,000 75,100 2,100

Total $371,100 365,000 (6100)

Bramble Inc. sold its investment in Ahn for $153,700 on January 20, 2021.

No other investments were acquired ,or sold during 2021; a dividend of $1,300 was received from Burnham

Corp. in June.

At December 31, 2021, the fair values of Burnham and Chi shares were $154,800 and $72,200, respectively.

Requirement :

1) Prepare the entry to adjust the portfolio of investments to fair value at December 31, 2020.

2) Prepare the presentation of all investment-related accounts on the statement of financial position at Dec.31, 2020.

3) Indicate what accounts and amounts would be reported on the statement of comprehensive income for the year

ended December 31, 2020, and where each would be reported.