On January 1, 2023, EE Company acquired 70,000 shares, representing 20% of the outstanding shares of WW Limited, at a price of $10 per share. On July 31, 2023, WW declared and paid a dividend of $1 per share. WW's net income for 2023 was $1,250,000. On December 31, 2023, the shares of WW were trading on the Toronto Stock Exchange at $14 per share. Required EE is not sure how to report its investment in WW shares. Using the following format, indicate the amounts that would appear on the balance sheet and the statement of comprehensive income for 2023 if the investment (a) has been irrevocably elected to be measured at fair value through OCI, (b) is classified as FVPL, or (c) is an associate. Complete the balance sheet in the following table. (For entries with a $0 balance, make sure to enter "0" in the appropriate column.) Balance sheet Investment in WW shares Fair value through OCI election FVPL Associate
On January 1, 2023, EE Company acquired 70,000 shares, representing 20% of the outstanding shares of WW Limited, at a price of $10 per share. On July 31, 2023, WW declared and paid a dividend of $1 per share. WW's net income for 2023 was $1,250,000. On December 31, 2023, the shares of WW were trading on the Toronto Stock Exchange at $14 per share. Required EE is not sure how to report its investment in WW shares. Using the following format, indicate the amounts that would appear on the balance sheet and the statement of comprehensive income for 2023 if the investment (a) has been irrevocably elected to be measured at fair value through OCI, (b) is classified as FVPL, or (c) is an associate. Complete the balance sheet in the following table. (For entries with a $0 balance, make sure to enter "0" in the appropriate column.) Balance sheet Investment in WW shares Fair value through OCI election FVPL Associate
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2023, EE Company acquired 70,000 shares, representing 20% of the outstanding shares of WW Limited, at a price of $10 per share. On July 31, 2023, WW declared and paid a dividend of $1 per share. WW's net income for 2023 was $1,250,000. On December 31,
2023, the shares of WW were trading on the Toronto Stock Exchange at $14 per share.
Required
EE is not sure how to report its investment in WW shares. Using the following format, indicate the amounts that would appear on the balance sheet and the statement of comprehensive income for 2023 if the investment (a) has been irrevocably elected to be measured at fair value
through OCI, (b) is classified as FVPL, or (c) is an associate.
Complete the balance sheet in the following table. (For entries with a $0 balance, make sure to enter "0" in the appropriate column.)
Balance sheet
Investment in WW shares
Fair value through OCI
election
FVPL
Associate
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