zmir Company purchased 25% ownership of Ankara Company on January 1, 2020 for CU250,000. Ankara reported net income of CU 100,000 and paid dividends of CU40,000 in 2020. In the second year Ankara recognised loss of CU60,000 in 2021. At December 31, 2020 zmir determined the fair value of its investment in Ankara to be CU235,000 and at December 31, 2021 the fair value of Ankara was calculated as CU300,000. Give all journal entries recorded by zmir with respect to its investment in Ankara in 2020 and 2021 assuming it uses: 1) The equity method. 2) The fair value method. 3) zmir needs cash funding through a loan and negotiations are ongoing with the bank. Bank is looking for profit on zmir's own financial statements as of 31 December 2020. If you were the owner of Izmir, would you prefer equtiy method or fair value method? Please critically discuss. Assume that net profit of Izmir is o before recording journal entries of this investment as of 31 December 2020). zmir Company purchased 25% ownership of Ankara Company on January 1, 2020 for CU250,000. Ankara reported net income of CU 100,000 and paid dividends of CU40,000 in 2020. In the second year Ankara recognised loss of CU60,000 in 2021. At December 31, 2020 zmir determined the fair value of its investment in Ankara to be CU235,000 and at December 31, 2021 the fair value of Ankara was calculated as CU300,000. Give all journal entries recorded by zmir with respect to its investment in Ankara in 2020 and 2021 assuming it uses: 1) The equity method. 2) The fair value method. 3) zmir needs cash funding through a loan and negotiations are ongoing with the bank. Bank is looking for profit on zmir's own financial statements as of 31 December 2020. If you were the owner of Izmir, would you prefer equtiy method or fair value method? Please critically discuss. Assume that net profit of Izmir is o before recording journal entries of this investment as of 31 December 2020). zmir Company purchased 25% ownership of Ankara Company on January 1, 2020 for CU250,000. Ankara reported net income of CU 100,000 and paid dividends of CU40,000 in 2020. In the second year Ankara recognised loss of CU60,000 in 2021. At December 31, 2020 zmir determined the fair value of its investment in Ankara to be CU235,000 and at December 31, 2021 the fair value of Ankara was calculated as CU300,000. Give all journal entries recorded by zmir with respect to its investment in Ankara in 2020 and 2021 assuming it uses: 1) The equity method. 2) The fair value method. 3) zmir needs cash funding through a loan and negotiations are ongoing with the bank. Bank is looking for profit on zmir's own financial statements as of 31 December 2020. If you were the owner of Izmir, would you prefer equtiy method or fair value method? Please critically discuss. Assume that net profit of Izmir is o before recording journal entries of this investment as of 31 December 2020)
