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, 2014.
(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, 2014.
(c) Prepare the journal entries dated June 30, August 15, and November 3, 2014. 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) Why would Samson not use the fair value through other comprehensive income model?

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Dr$893,500 Hal Dec. 1, 2013 Dec. 31, 2013 Aug. 15, 2014 Aug. 15, 2014 Nov. 3, 2014 Dec. 31, 2014 Cr. $10,100 70,605 Purchase of 40,000 shares Fair value adjustment 40,000 shares value Fair value Sale of 3,000 shares Purchase of 2,000 shares Fair value adjustment 39,000 shares $893,500 4,350 35,480 883,400 887,750 817,145 852,625 872,245 adjustment of 3,000 shares 19,620 Hal Accumulated Other Comprehensive Income Closing entry Dr. Cr. $10,100 10,100 (10,278) Dec. 31, 2013 Dec. 31, 2014 Closing entry June 30, 2014Dividends from Anderson Corp Aug. 15, 2014 Reclassification adjustment-3,000 shares 20,378 Cr. Dividend Revenue Dr. 35,700 (35,700) 3,592 $(3,592) $10,100 Gain on Sale of Investments Dr. Cr. Hal Unrealized Gain or Loss-OC Cr. Hal $10,100 Dec. 31, 2013 ir value Dec. 31, 2013 Closing entry Aug. 15, 2014Fair value adjustment of 3,000 shares Aug. 15, 2014Reclassification adjustment 3,000 shares $10,100 4,350 (4,350) (758) ca,a) 3,592 Fair value adjustment of 39,000 shares Closing entry 20,37819,620 Dec. 31, 2014