During 2019, Farrah Ltd. purchased 4,000 shares of Rose of Sharon Corp. for $41 per share ($164,000 total). The company designated half of the shares at fair value through profit or loss and irrevocably elected to classify the remaining half of its investment at fair value through OCI. Farrah held these shares until September 2021, when it sold them for $52 per share. During these three years, Rose of Sharon paid dividends of $1 per share on July 31 each year. On Farrah's fiscal year-end (December 31), shares of Rose of Sharon closed at $51, $36, and $56 in 2019, 2020, and 2021, respectively.
Required:
Determine the amounts to be reported on Farrah's balance sheet and statement of comprehensive income with respect to the company's investment in Rose of Sharon Corp for 2019, 2020 and 2021.

Question

Quizplus · Accepted Answer

The Answer of During 2019, Farrah Ltd. purchased 4,000 shares of Rose of Sharon Corp. for $41 per share ($164,000 total). The company designated half of the shares at fair value through profit or loss and irrevocably elected to classify the remaining half of its investment at fair value through OCI. Farrah held these shares until September 2021, when it sold them for $52 per share. During these three years, Rose of Sharon paid dividends of $1 per share on July 31 each year. On Farrah's fiscal year-end (December 31), shares of Rose of Sharon closed at $51, $36, and $56 in 2019, 2020, and 2021, respectively.
Required:
Determine the amounts to be reported on Farrah's balance sheet and statement of comprehensive income with respect to the company's investment in Rose of Sharon Corp for 2019, 2020 and 2021.