On January 25,2016,Mulroney Ltd.purchased 100 common shares of RBC (Royal Bank of Canada)for $40 each.During the remainder of 2016,Mulroney received $2.10 per share in dividends and RBC's earnings per share were $5.50.The closing price of the shares on the fiscal year-end date of December 31,2016 was $41.
Required:
Assume that Mulroney irrevocably elected to classify its investment at fair value through OCI.
a.At what value should Mulroney report the RBC shares on its December 31,2016 balance sheet?
b.How much income should Mulroney report in 2015 in relation to these shares?
c.How much other comprehensive income (OCI)should Mulroney report in 2016 in relation to these shares?

Question

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The Answer of On January 25,2016,Mulroney Ltd.purchased 100 common shares of RBC (Royal Bank of Canada)for $40 each.During the remainder of 2016,Mulroney received $2.10 per share in dividends and RBC's earnings per share were $5.50.The closing price of the shares on the fiscal year-end date of December 31,2016 was $41.
Required:
Assume that Mulroney irrevocably elected to classify its investment at fair value through OCI.
a.At what value should Mulroney report the RBC shares on its December 31,2016 balance sheet?
b.How much income should Mulroney report in 2015 in relation to these shares?
c.How much other comprehensive income (OCI)should Mulroney report in 2016 in relation to these shares?