Handley Ltd. acquired 42% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.68 million for 142,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that Handley received on March 20, June 20, September 20, and December 20. Lecce reported net income of $1.42 million for the year. At December 31, the market price of the Lecce shares was $44 per share.
Handley Ltd. acquired 42% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.68 million for 142,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that Handley received on March 20, June 20, September 20, and December 20. Lecce reported net income of $1.42 million for the year. At December 31, the market price of the Lecce shares was $44 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Handley Ltd. acquired 42% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.68 million for 142,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that Handley received on March 20, June 20, September 20, and December 20. Lecce reported net income of $1.42 million for the year. At December 31, the market price of the Lecce shares was $44 per share.
![Statement of Financial Position:
Long-term Investments
Purchase Price
Receipt of Dividends
Investee's Income
Fair Value Adjustment
Carrying Amount
Statement of Income:
Income from Associates
Unrealized Gain on Long-term Investments
Dividend Income
Equity Method
FVTPL
Cost M
+A
$
$
$
$
$
$
596,400
$
568000
340,800
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6aab799c-af8e-41a2-90fd-72477267fccb%2F08fff205-bde3-49c7-9611-5562d3457266%2Fytb9vni_processed.png&w=3840&q=75)
Transcribed Image Text:Statement of Financial Position:
Long-term Investments
Purchase Price
Receipt of Dividends
Investee's Income
Fair Value Adjustment
Carrying Amount
Statement of Income:
Income from Associates
Unrealized Gain on Long-term Investments
Dividend Income
Equity Method
FVTPL
Cost M
+A
$
$
$
$
$
$
596,400
$
568000
340,800
$
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