ABC Inc. bought 1,000 shares of 678 Inc. at $10 per share on July 1^st, 2012. On December 30^th, 678 Inc. declared a dividend of $1.20 per share. The shares are designated as FVTPL by ABC's management. The share price was $9 on December 31^st, 2012.
Required:
Prepare all required journal entries for 2012.
Suppose that early in 2013, a press release indicates that 678 Inc. will have going-concern issues. As a result of the news, the share price on January 2^nd drops to $3 per share. ABC Inc has determined that the likelihood of the shares ever rising above the $3 mark were minimal. Would this impact your journal entries in requirement 1? Explain.

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The Answer of ABC Inc. bought 1,000 shares of 678 Inc. at $10 per share on July 1^st, 2012. On December 30^th, 678 Inc. declared a dividend of $1.20 per share. The shares are designated as FVTPL by ABC's management. The share price was $9 on December 31^st, 2012. Required: Prepare all required journal entries for 2012. Suppose that early in 2013, a press release indicates that 678 Inc. will have going-concern issues. As a result of the news, the share price on January 2^nd drops to $3 per share. ABC Inc has determined that the likelihood of the shares ever rising above the $3 mark were minimal. Would this impact your journal entries in requirement 1? Explain.

ABC Inc Bought 1,000 Shares of 678 Inc