Rasor Inc. reports under IFRS and recently invested $50,750 to obtain 40% ownership in Ivan. Tenor owns 60% of Ivan. However, all major strategic decisions require the unanimous consent of both Rasor and Tenor. The agreement stipulates that both Rasor and Tenor have rights over the net assets of Ivan.
The balance of the Rasor's investment in Ivan was $50,750 at January 1, 20X3. During the next three years, Ivan reported the following net earnings (losses)and dividends paid.
$\begin{array}{|l|r|r|}
\hline& \text { Net earnings (loss) } & \text { Dividends paid } \
& \$ & \$ \
\hline 20X3 & 135,600 & 120,000 \
\hline 20X4 & 15,700 & 120,000 \
\hline 20X5 & (103,400) & 0 \
\hline
\end{array}$ Required:

Question

Rasor Inc. reports under IFRS and recently invested $50,750 to obtain 40% ownership in Ivan. Tenor owns 60% of Ivan. However, all major strategic decisions require the unanimous consent of both Rasor and Tenor. The agreement stipulates that both Rasor and Tenor have rights over the net assets of Ivan.
The balance of the Rasor's investment in Ivan was $50,750 at January 1, 20X3. During the next three years, Ivan reported the following net earnings (losses)and dividends paid.
 $\begin{array}{|l|r|r|} 
\hline& \text { Net earnings (loss) } & \text { Dividends paid } \
& \$ & \$ \
\hline 20X3 & 135,600 & 120,000 \
\hline 20X4 & 15,700 & 120,000 \
\hline 20X5 & (103,400) & 0 \
\hline
\end{array}$ Required:

Quizplus · Accepted Answer

The Answer of Rasor Inc. reports under IFRS and recently invested $50,750 to obtain 40% ownership in Ivan. Tenor owns 60% of Ivan. However, all major strategic decisions require the unanimous consent of both Rasor and Tenor. The agreement stipulates that both Rasor and Tenor have rights over the net assets of Ivan.
The balance of the Rasor's investment in Ivan was $50,750 at January 1, 20X3. During the next three years, Ivan reported the following net earnings (losses)and dividends paid.
 $\begin{array}{|l|r|r|} 
\hline& \text { Net earnings (loss) } & \text { Dividends paid } \
& \$ & \$ \
\hline 20X3 & 135,600 & 120,000 \
\hline 20X4 & 15,700 & 120,000 \
\hline 20X5 & (103,400) & 0 \
\hline
\end{array}$ Required:

Rasor Inc Reports Under IFRS and Recently Invested $50,750 to Obtain