Canada bought 10% of the 200,000 common shares of Alberta Enterprises at a total cost of $13.00 per share on March 1st. On July 31st Alberta declared and paid a $75,000 cash dividend. On December 31st Alberta reported net income of $122,000 for the year and the market price of its shares was $15.00. What is the balance in the Investment in Alberta Enterprises account on Canada's books at December 31st assuming Canada follows IFRS and accounts for Alberta using the FVNI method? A.$252,500 B.$267,500 C.$300,000 D.$260,000
Canada bought 10% of the 200,000 common shares of Alberta Enterprises at a total cost of $13.00 per share on March 1st. On July 31st Alberta declared and paid a $75,000 cash dividend. On December 31st Alberta reported net income of $122,000 for the year and the market price of its shares was $15.00. What is the balance in the Investment in Alberta Enterprises account on Canada's books at December 31st assuming Canada follows IFRS and accounts for Alberta using the FVNI method? A.$252,500 B.$267,500 C.$300,000 D.$260,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Canada bought 10% of the 200,000 common
shares of Alberta Enterprises at a total cost of
$13.00 per share on March 1st. On July 31st
Alberta declared and paid a $75,000 cash
dividend. On December 31st Alberta reported
net income of $122,000 for the year and the
market price of its shares was $15.00.
What is the balance in the Investment in
Alberta Enterprises account on Canada's
books at December 31st assuming Canada
follows IFRS and accounts for Alberta using
the FVNI method?
A.$252,500
B.$267,500
C.$300,000
D.$260,000
E. None of the other alternatives are correct](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0c2cd7ac-6c62-4531-abed-50c08a78fe53%2Ff1dc7091-53a2-4000-b98e-22d0493efd6c%2Felqgk94_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Canada bought 10% of the 200,000 common
shares of Alberta Enterprises at a total cost of
$13.00 per share on March 1st. On July 31st
Alberta declared and paid a $75,000 cash
dividend. On December 31st Alberta reported
net income of $122,000 for the year and the
market price of its shares was $15.00.
What is the balance in the Investment in
Alberta Enterprises account on Canada's
books at December 31st assuming Canada
follows IFRS and accounts for Alberta using
the FVNI method?
A.$252,500
B.$267,500
C.$300,000
D.$260,000
E. None of the other alternatives are correct
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