Of $50,00 investment is going to be accounted for at fair value through other comprehensive income (FV- OCI). At year-end, December 31, 2020, the Rai Corporation shares had a fair value of $30,400. Assume the tax rate is 40%. Assume that any gains that are ultimately realized on the sale of the shares will be taxable as ordinary income when the gains are realized. a) Prepare the necessary journal entries to record the unrealized gain or loss and the related income taxes in 2020. b) Prepare the statement of comprehensive income for Sabrina, beginning with the line for net income of $106,600. Sabrina is reporting under IFRS.

Of $50,00 investment is going to be accounted for at fair value through other comprehensive income (FV- OCI). At year-end, December 31, 2020, the Rai Corporation shares had a fair value of $30,400. Assume the tax rate is 40%. Assume that any gains that are ultimately realized on the sale of the shares will be taxable as ordinary income when the gains are realized. a) Prepare the necessary journal entries to record the unrealized gain or loss and the related income taxes in 2020. b) Prepare the statement of comprehensive income for Sabrina, beginning with the line for net income of $106,600. Sabrina is reporting under IFRS.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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