Ayayai Corporation made the following purchases of investments during 2023, the first year in which Ayayai invested in equity securities: On January 15, it purchased 9,450 shares of Nirmala Corp's common shares at $35.20 per share plus commission of $2,079. On April 1, it purchased 5,250 shares of Oxana Corp's common shares at $55 per share plus commission of $3,539. 3. On September 10, it purchased 7,350 shares of WTA Corp's preferred shares at $27.80 per share plus commission of $3,056. 1. 2. On May 20, 2023, Ayayai sold 3,150 of the Nirmala common shares at a market price of $37 per share less brokerage commissions of $2,993. The year-end fair values per share were as follows: Nirmala $32, Oxana $58, and WTA $29. The chief accountant of Ayayai tells you that Ayayai holds these investments with the intention of selling them to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Ayayai follows IFRS.
Ayayai Corporation made the following purchases of investments during 2023, the first year in which Ayayai invested in equity securities: On January 15, it purchased 9,450 shares of Nirmala Corp's common shares at $35.20 per share plus commission of $2,079. On April 1, it purchased 5,250 shares of Oxana Corp's common shares at $55 per share plus commission of $3,539. 3. On September 10, it purchased 7,350 shares of WTA Corp's preferred shares at $27.80 per share plus commission of $3,056. 1. 2. On May 20, 2023, Ayayai sold 3,150 of the Nirmala common shares at a market price of $37 per share less brokerage commissions of $2,993. The year-end fair values per share were as follows: Nirmala $32, Oxana $58, and WTA $29. The chief accountant of Ayayai tells you that Ayayai holds these investments with the intention of selling them to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Ayayai follows IFRS.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 9P
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