On January 1, 2023, Grouper Corporation purchased 30% of the common shares of Martz Limited for $201.000. Martz shares are not traded in an active market. The carrying amount of Martz's net assets was $540,000 on that date. Any excess of the purchase cost over Grouper's share of Martz's carrying amount is attributable to unrecorded intangibles with a 20-year life. During the year, Martz earned net income and comprehensive income of $78,000 and paid dividends of $15,600. The investment in Martz had a fair value of $206,000 at December 31, 2023. During 2024, Martz incurred a net loss and comprehensive loss of $83,000 and paid no dividends. At December 31, 2024, the fair value of the investment was $145,000 and the recoverable amount was $154,000. Assume that Grouper follows IFRS.
On January 1, 2023, Grouper Corporation purchased 30% of the common shares of Martz Limited for $201.000. Martz shares are not traded in an active market. The carrying amount of Martz's net assets was $540,000 on that date. Any excess of the purchase cost over Grouper's share of Martz's carrying amount is attributable to unrecorded intangibles with a 20-year life. During the year, Martz earned net income and comprehensive income of $78,000 and paid dividends of $15,600. The investment in Martz had a fair value of $206,000 at December 31, 2023. During 2024, Martz incurred a net loss and comprehensive loss of $83,000 and paid no dividends. At December 31, 2024, the fair value of the investment was $145,000 and the recoverable amount was $154,000. Assume that Grouper follows IFRS.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q11.
Transcribed Image Text:Illustrate how the statement of comprehensive income is affected in 2023. (Enter answers in alphabetical order)
Net income will include the
of $
and the
of $
Transcribed Image Text:On January 1, 2023, Grouper Corporation purchased 30% of the common shares of Martz Limited for $201.000, Martz shares are not
traded in an active market. The carrying amount of Martz's net assets was $540,000 on that date. Any excess of the purchase cost over
Grouper's share of Martz's carrying amount is attributable to unrecorded intangibles with a 20-year life. During the year, Martz
earned net income and comprehensive income of $78,000 and paid dividends of $15,600. The investment in Martz had a fair value of
$206,000 at December 31, 2023. During 2024, Martz incurred a net loss and comprehensive loss of $83,000 and paid no dividends. At
December 31, 2024, the fair value of the investment was $145,000 and the recoverable amount was $154,000. Assume that Grouper
follows IFRS.
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