Arantxa Corporation made the following purchases of investments during 2023, the first year in which Arantxa invested in equity securities: 1. 2. 3. On January 15, it purchased 9,000 shares of Nirmala Corp's common shares at $33.50 per share plus commission of $1,980. On April 1, it purchased 5,000 shares of Oxana Corp's common shares at $52 per share plus commission of $3,370. On September 10, it purchased 7,000 shares of WTA Corp's preferred shares at $26.50 per share plus commission of $2,910. On May 20, 2023, Arantxa sold 3,000 of the Nirmala common shares at a market price of $35 per share less brokerage commissions of $2,850. The year-end fair values per share were as follows: Nirmala $30, Oxana $55, and WTA $28. The chief accountant of Arantxa tells you that Arantxa holds these investments with the intention of selling them to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Arantxa follows IFRS.
Arantxa Corporation made the following purchases of investments during 2023, the first year in which Arantxa invested in equity securities: 1. 2. 3. On January 15, it purchased 9,000 shares of Nirmala Corp's common shares at $33.50 per share plus commission of $1,980. On April 1, it purchased 5,000 shares of Oxana Corp's common shares at $52 per share plus commission of $3,370. On September 10, it purchased 7,000 shares of WTA Corp's preferred shares at $26.50 per share plus commission of $2,910. On May 20, 2023, Arantxa sold 3,000 of the Nirmala common shares at a market price of $35 per share less brokerage commissions of $2,850. The year-end fair values per share were as follows: Nirmala $30, Oxana $55, and WTA $28. The chief accountant of Arantxa tells you that Arantxa holds these investments with the intention of selling them to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Arantxa follows IFRS.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Arantxa Corporation made the following purchases of investments during 2023, the first year in which Arantxa invested in equity
securities:
1.
2.
3.
On January 15, it purchased 9,000 shares of Nirmala Corp.'s common shares at $33.50 per share plus commission of $1,980.
On April 1, it purchased 5,000 shares of Oxana Corp's common shares at $52 per share plus commission of $3,370.
On September 10, it purchased 7,000 shares of WTA Corp's preferred shares at $26.50 per share plus commission of $2,910.
On May 20, 2023, Arantxa sold 3,000 of the Nirmala common shares at a market price of $35 per share less brokerage commissions of
$2,850. The year-end fair values per share were as follows: Nirmala $30, Oxana $55, and WTA $28. The chief accountant of Arantxa
tells you that Arantxa holds these investments with the intention of selling them to earn short-term profits from appreciation in their
prices and accounts for them using the FV-NI model.
Arantxa follows IFRS.
Transcribed Image Text:Your answer is partially correct.
What amount will be reported as other comprehensive income for the year ended December 31, 2023? Show the wording that
would appear on the comprehensive income statement. (If an amount reduces the account balance then enter with negative sign.)
Other Comprehensive Income
Items that may not be reclassified subsequently to net income
Holding losses arising during the year
Fair value adjustment May 20 On Nirmala Corp. shares sold
Year end fair value adjustment for portfolio
Total
LA
tA
$
$
LA
3100
990
-4090
-3100
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