Ewok Enterprises recently elected the fair value option to account for its investment in Yoda Inc. Ewok has significant influence over Yoda. Ewok purchased the shares for $210,000 and the shares are currently trading for $195,000 at year-end. Record the journal entries needed to purchase the investment, and then adjust it to fair value. Then, show how this investment will be reported on the balance sheet at year-end.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q142: Skywalker Limited purchased shares of Jedi Jewelers
Q143: Ewok Enterprises recently elected the fair value
Q144: If a company has elected the fair
Q145: For securities classified as trading, companies disclose
Q146: IFRS requires additional disclosures of summarized financial
Q148: Skywalker Limited purchased an equity investment in
Q149: Accounting for equity securities with no significant
Q150: Ewok Enterprises recently elected the fair value
Q151: Companies generally provide both qualitative and quantitative
Q152: For available-for-sale securities, companies must disclose whether
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents