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send it to expert Problem 0 2 - 0 2 ( LO 2 , 3 ) PART A On January 1 , Year 5 ,
send it to expert Problem LO
PART A
On January Year Anderson Corporation paid $ for of the outstanding shares of Carter Inc. The investment
was considered to be one of significant influence. In Year Carter reported profit of $; in Year its profit was $
Dividends paid were $ in each of the two years.
Required:
Calculate the balance in Anderson's investment account as at December Year Omit $ sign in your response.
Balance in Anderson's investment account
$
PART B
Now assume that on December Year Anderson lost its ability to significantly influence the operating, investing, and financing
decisions for Carter when another party obtained sufficient shares in the open market to obtain control over Carter. Accordingly, the
investment in Carter was reclassified as a FVTPL investment. The fair value of the Carter shares was $ per share on this date.
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