FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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ABC Corp has excess cash to invest and wants to buy shares of XYZ inc to profit from the changes in their value. The
company follows IFRS and will account for its investment in XYZ Inc using the FV-NI method and has a December 31
year end. The share price of XYZ Inc was $56.52 on March 1, S66.52 on September 15, and $61.50 on December 31.
ABC Corp purchased 51.970 shares of XYZ inc on March 1 and sold 33,091 of them on September 15. It still owned the
remaining shares on December 31. The company paid a per-share commission fee of 1.97% of the share price on the
day of buying or selling the shares. Assuming the company record all investment income. gains, fees, and losses in one
account, how much net investment income or loss was recorded duning the year on its investment in the shares of XYZ
Inc?
O a $138281
Ob S131535
Oe $145026
Od. $141653
O. $134908
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Transcribed Image Text:ABC Corp has excess cash to invest and wants to buy shares of XYZ inc to profit from the changes in their value. The company follows IFRS and will account for its investment in XYZ Inc using the FV-NI method and has a December 31 year end. The share price of XYZ Inc was $56.52 on March 1, S66.52 on September 15, and $61.50 on December 31. ABC Corp purchased 51.970 shares of XYZ inc on March 1 and sold 33,091 of them on September 15. It still owned the remaining shares on December 31. The company paid a per-share commission fee of 1.97% of the share price on the day of buying or selling the shares. Assuming the company record all investment income. gains, fees, and losses in one account, how much net investment income or loss was recorded duning the year on its investment in the shares of XYZ Inc? O a $138281 Ob S131535 Oe $145026 Od. $141653 O. $134908
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