In respect of this investment, the adjusting journal entry required at year-end would involve which of the following?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In respect of this investment, the adjusting journal entry required at year-end would
involve which of the following?
ONone of the above.
A credit to OCI of $900.
A debit to the investment of $2,000.
OA credit to OCI of $1,400.
O A credit to OCI of $1,500.
Transcribed Image Text:In respect of this investment, the adjusting journal entry required at year-end would involve which of the following? ONone of the above. A credit to OCI of $900. A debit to the investment of $2,000. OA credit to OCI of $1,400. O A credit to OCI of $1,500.
MCQ1
On November 1, Jeremiah Company ("IC") acquired the following investment which
JC elected to account for using the OCI option under IFRS 9:
• Lin Co. - 1,000 common shares at $30 per share. Brokerage fees to acquire
the shares amounted to $500.
JC's year-end is December 31. The quoted market price at December 31 was as
follows:
• Lin Co. = $32. If JC were to sell the investment at year-end, it would incur
$600 of brokerage fees.
Transcribed Image Text:MCQ1 On November 1, Jeremiah Company ("IC") acquired the following investment which JC elected to account for using the OCI option under IFRS 9: • Lin Co. - 1,000 common shares at $30 per share. Brokerage fees to acquire the shares amounted to $500. JC's year-end is December 31. The quoted market price at December 31 was as follows: • Lin Co. = $32. If JC were to sell the investment at year-end, it would incur $600 of brokerage fees.
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