On January 1, 2009, Black Corporation purchased 15 per cent of the outstanding shares of White Corporation for $498,000. From Black's perspective, White was a FVTPL investment. The fair value of Black's investment was $520,000 at December 31, 2009. On January 1, 2010, 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. During the two years White reported the following results: With respect to this investment, prepare Black's journal entries for both 2009 and 2010.

Question

On January 1, 2009, Black Corporation purchased 15 per cent of the outstanding shares of White Corporation for $498,000. From Black's perspective, White was a FVTPL investment. The fair value of Black's investment was $520,000 at December 31, 2009. On January 1, 2010, 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. During the two years White reported the following results:  With respect to this investment, prepare Black's journal entries for both 2009 and 2010.

Quizplus · Accepted Answer

The Answer of On January 1, 2009, Black Corporation purchased 15 per cent of the outstanding shares of White Corporation for $498,000. From Black's perspective, White was a FVTPL investment. The fair value of Black's investment was $520,000 at December 31, 2009. On January 1, 2010, 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. During the two years White reported the following results:  With respect to this investment, prepare Black's journal entries for both 2009 and 2010.

On January 1, 2009, Black Corporation Purchased 15 Per Cent