The following accounts appear in the ledger of Samson Inc. Samson€™s shares trade on the Toronto and New York stock exchanges and so the company uses IFRS. Samson made a special election to account for shares held in Anderson Corp. as FV-OCI and to reclassify out of OCI and into net income investment holding gains that are realized. It also chooses to classify dividends received as operating cash flows. Samson€™s investment in Anderson Corp. is not strategic and is classified as a long-term investment.

Instructions
(a) Prepare a partial comparative statement of financial position for Samson Inc. at the fiscal year end of December 31, 2011.
(b) Prepare an income statement, a statement of comprehensive income, and a statement of changes in accumulated other comprehensive income for the year ended December 31, 2011.
(c) Prepare the journal entries dated June 30, August 15, and November 3, 2011. Provide explanations to the entries.
(d) Using the direct and the indirect methods, prepare a table that contrasts the presentation of all transactions recorded in the ledger accounts provided on Samson€™s statement of cash flows. Be specific about the classification within the statement for each item that is reported. What other choices could Samson have used in the classification of cash flows?
(e) How would your answer to parts (b) and (d) above change if the investments were accounted for using the fair value through net income model?
(f) What would be the reason why Samson would not use the fair value through other comprehensive income model?

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Bal Investment in Anderson Corp Purchase of 40.000 shares Fair value adjustment 40,000 shares Fair value adjustment of 3,000 shares Sale of 3,000 shares Purchase of 2,000 shares Fair value adjustment 39,000 shares Dr Cr Dec. 1, 2010 Dec. 31, 2010 Aug. 15, 2011 Aug. 15, 2011 Nov. 3, 2011 Dec. 31, 2011 $893,500 4,350 35,480 $893,500 883,400 887,750 823,900 859,380 879,000 $10,100 63,850 19,620 Bal Accumulated Other Comprehensive Income Closing entry Closing entry Dividend Income Dr Cr Dec. 31, 2010 Dec. 31, 2011 $ 10,100 $ 10,100 18,620 (8,520) Dr Cr $35,700 Cr 5,350 Cr $(35,700) Bal $ (5,350) Bal $10,100 June 30, 2011 Dividends from Anderson Corp Gain on Sale of Anderson Corp. Shares Reclassification adjustment 3,000 shares Dr Aug. 15, 2011 Holding Gain/Losses on FV-0CI Investments Fair value adjustment 40,000 shares Closing entry Fair value adjustment of 3,000 shares Reclassification adjustment 3,000 shares Fair value adjustment 39,000 shares Closing entry Dr Dec. 31, 2010 Dec. 31, 2010 Aug. 15, 2011 Aug. 15, 2011 Dec. 31, 2011 Dec. 31, 2011 $10,100 $10,100 4,350 (4,350) 1,000 5,350 19,620 (18,620) 18,620