As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 30% of Nursery Supplies Inc.'s 20 million shares for $60 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $70 million and distributed cash dividends of $2.00 per share. At the end of the year, the fair value of the shares is $56 million.
Required:
a. How would this investment be classified on Florists' balance sheet?
b. Prepare all appropriate journal entries related to the investment during 2021, under the fair value option, and in a manner similar to what Florists would use for investments in equity securities for which it does not have significant influence.
Business
Views: 0 Asked: 12-02 18:13:44
On this page you can find the answer to the question of the business category, and also ask your own question
Other questions in category
- True or false: in situations where an annual budget deficit exists, cutting expenses from the budget...
- True or false
- 1. (15 points) A sales budget is given below for one of the products manufactured by the Key...
- The distinguishing feature of many firms that pursue _____ strategy is that they are selling a produ...
- The framers of the constitution wanted ________ to choose the president and vice president....
- How much interest is earned in just the 2nd year on a $1,000 deposit that earns 7% interest compound...
- The reserve requirement is 10%, and Olga withdraws $3,000 for travel money from her checking account...
- a blank role is behavior that concentrates on getting the team's work done for example one team memb...
- Spatial layout and functionality increase in importance when:...
- For billing and collection purposes, companies keep a separate accounts receivable account for each ...