1) Oman LLC is a company with a December 31 year end. On January 1, 2015, the company acquires 3,000 shares of Abu Hasan LLC at a cost of OMR 100 per share. Transaction costs total OMR 3000. The investment does not give Oman LLC influence over, or control of Abu Hasan LLC. Oman LLC classifies these shares as held for trading. On December 31, 2015, the fair value of the Abu Hasan shares has increased to OMR 120 per share. The Abu Hasan LLC shares did not declare or pay any dividends during 2015. On March 1, 2016, Oman LLC sells all of the Abu Hasan LLC shares for OMR 118 per share. Transaction costs for the disposal are OMR 3100.Prepare Journal Entries in the books of Oman LLC
1) Oman LLC is a company with a December 31 year end. On January 1, 2015, the company acquires 3,000 shares of Abu Hasan LLC at a cost of OMR 100 per share. Transaction costs total OMR 3000. The investment does not give Oman LLC influence over, or control of Abu Hasan LLC. Oman LLC classifies these shares as held for trading. On December 31, 2015, the fair value of the Abu Hasan shares has increased to OMR 120 per share. The Abu Hasan LLC shares did not declare or pay any dividends during 2015. On March 1, 2016, Oman LLC sells all of the Abu Hasan LLC shares for OMR 118 per share. Transaction costs for the disposal are OMR 3100.Prepare Journal Entries in the books of Oman LLC
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 28E
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1) Oman LLC is a company with a December 31 year end. On January 1, 2015, the company acquires 3,000 shares of Abu Hasan LLC at a cost of OMR 100 per share. Transaction costs total OMR 3000. The investment does not give Oman LLC influence over, or control of Abu Hasan LLC. Oman LLC classifies these shares as held for trading.
On December 31, 2015, the fair value of the Abu Hasan shares has increased to OMR 120 per share. The Abu Hasan LLC shares did not declare or pay any dividends during 2015.
On March 1, 2016, Oman LLC sells all of the Abu Hasan LLC shares for OMR 118 per share. Transaction costs for the disposal are OMR 3100.Prepare Journal Entries in the books of Oman LLC
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