On January 1, 2019, Black Corporation purchased 15,000 of the 100,000 (15 per cent) outstanding shares of White Corporation for $498,000. From Black's perspective, White was a fair value through profit or loss (FVTPL) investment. The fair value of Black's investment was $520,000 at December 31, 2019.
On January 1, 2020, Black purchased an additional 30 per cent of White's shares for $1,040,000. The second share purchase allows Black to exert significant influence over White.

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2019, Black Corporation purchased 15,000 of the 100,000 (15 per cent) outstanding shares of White Corporation for $498,000. From Black's perspective, White was a fair value through profit or loss (FVTPL) investment. The fair value of Black's investment was $520,000 at December 31, 2019.
On January 1, 2020, Black purchased an additional 30 per cent of White's shares for $1,040,000. The second share purchase allows Black to exert significant influence over White.

On January 1, 2019, Black Corporation Purchased 15,000 of the 100,000