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ABC Inc Purchased Shares of DEF Inc as Follows

Question 86

Multiple Choice

ABC Inc purchased shares of DEF Inc as follows:

June 30th, 2013 4,000 shares @ $3 per share $12,000
June 30th, 2014 3,000 shares @ $4 per share $12,000
June 30th, 2015 3,000 shares @ $6 per share $18,000

The shares are considered to be passive investments. ABC Inc. has a December 31st, year-end.
The market value of the DEF shares at each year-end was as follows:
December 31st, 2013 $3.50 per share
December 31st, 2014 $5.00 per share
December 31st, 2015 $5.50 per share
On July 1st, 2015, ABC sold half its shares in DEF Inc. for $6.50 per share.

-The balance in the OCI account related to the Investment in DEF account on December 31st, 2015 was:


A) Nil.
B) $8,000 Cr.
C) $5,500 Cr.
D) $3,000 Cr.

Correct Answer:

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