Question
In: Accounting
On June 1, 2018 Antwerp Company purchased 300 shares of Palmira at a cost of $34...
On June 1, 2018 Antwerp Company purchased 300 shares of Palmira at a cost of $34 per share. Antwerp is a public company reporting under IFRS. It intends to hold the shares indefinitely, and consequently elects to record the shares using Fair Value Through Other Comprehensive Income (FV-OCI). · On December 31, 2018 the shares have a fair value of $36 per share. · On September 1, 2019, Palmira pays its shareholders a dividend of $4 per share. ·
On December 31, 2019, the shares have a fair value of $37 per share. · On March 31st, 2020 due to cash flow difficulties, Antwerp decides to sell its shares at $35 per share. Required: Write the entries to record all of Antwerp’s transactions from the purchase to the sale of shares using FV-OCI. Assume that Antwerp reclassifies any balance from AOCI when the shares are sold.
Solutions
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