Date Account Titles and Explanation Debit Credit (To adjust to fair value at date of disposal) (To record disposal) (To reclassify holding gain)
Date Account Titles and Explanation Debit Credit (To adjust to fair value at date of disposal) (To record disposal) (To reclassify holding gain)
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 5DQ
Related questions
Question
Blue Spruce Corporation made the following purchases of investments during 2023, the frst year in which Blue Spruce invested in
equity securities:
On January 15, it purchased 12,240 shares of Nirmala Corp's common shares at $45.60 per share plus commission of
1.
$2,694.
On April 1, it purchased 6,800 shares of Oxana Corp's common shares at $71 per share plus commission of $4,583.
On September 10, it purchased 9,520 shares of WTA Corp's preferred shares at $36.60 per share plus commission of
$3,958.
Repeat the parts above, assuming the investments are accounted for using FV-OCI with no recycling. Blue Spruce's policy is to
capitalize transaction costs on the acquisition of FV-OCI investments and reduce the proceeds on disposal. In addition, the
company reclassifes any gains or losses on disposition toRetained Earnings .
capitalize transaction costs on the acquisition of FV-OCI investments and reduce the proceeds on disposal. In addition, the
company reclassifes any gains or losses on disposition to
Transcribed Image Text:Date
Account Titles and Explanation
Debit
Credit
(To adjust to fair value at date of disposal)
(To record disposal)
(To reclassify holding gain)
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