Answer all the subparts a,b,c On December 31, 2020, CFR Co. provided the following information as at December 31, 2020 about its investment accounts that it acquired for trading purposes: Carrying Amount Fair Value ABC Ltd. shares $15,000 $17,500 Ace Ventura Corp. shares 24,300 22,500 Shrek Ltd. Shares 75,000 80,200 During 2021, Ace Ventura Corp. shares were sold for $23,000 and 50% of the Shrek shares were sold for $42,000. At the end of 2021, the fair value of ABC shares was $19,200 and Shrek Ltd. was $41,000. CFR follows IFRS. Required: a. Prepare the adjusting entry for December 31, 2020, if any. b. Prepare the entry for the Ace Ventura and Shrek sales. c. Prepare the adjusting entry for December 31, 2021, if an
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Answer all the subparts a,b,c
On December 31, 2020, CFR Co. provided the following information as at December 31, 2020 about its investment accounts that it acquired for trading purposes:
Carrying Amount Fair Value
ABC Ltd. shares $15,000 $17,500
Ace Ventura Corp. shares 24,300 22,500
Shrek Ltd. Shares 75,000 80,200
During 2021, Ace Ventura Corp. shares were sold for $23,000 and 50% of the Shrek shares were sold for $42,000. At the end of 2021, the fair value of ABC shares was $19,200 and Shrek Ltd. was $41,000. CFR follows IFRS.
Required:
a. Prepare the
b. Prepare the entry for the Ace Ventura and Shrek sales.
c. Prepare the adjusting entry for December 31, 2021, if any.
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