Oak Ridge Corporation, which reports under IFRS, has the following investments at December 31, 2021: Trading investments: common shares of National Bank, cost $39,900, fair value $47,000. 1. 2. Investment in an associate (40% ownership): common shares of Sword Corp., cost $219,100, fair value cannot be determined because the shares do not trade publicly. Sabre purchased the investment was purchased on January 1, 2021. For the year ended December 31, 2021, Sword Corp. reported net income of $54,800 and declared and paid dividends of $17,500. 3. Equity investment: common shares of Epee Inc. (19% ownership) purchased on July 1, 2021, cost $421,900, fair value at December 31, 2021. $547,200. Management intends to purchase more shares of Epee in two years. Epee earned $41,200 for the year ended December 31, 2021, and declared and paid dividends of $2,200, which sabre received at the end of each quarter in 2021. 4. Bond investment to be held to maturity: bonds of Ghoti Ltd., purchased at a cost equal to its face value of $319,700, fair value $346,400.

Oak Ridge Corporation, which reports under IFRS, has the following investments at December 31, 2021: Trading investments: common shares of National Bank, cost $39,900, fair value $47,000. 1. 2. Investment in an associate (40% ownership): common shares of Sword Corp., cost $219,100, fair value cannot be determined because the shares do not trade publicly. Sabre purchased the investment was purchased on January 1, 2021. For the year ended December 31, 2021, Sword Corp. reported net income of $54,800 and declared and paid dividends of $17,500. 3. Equity investment: common shares of Epee Inc. (19% ownership) purchased on July 1, 2021, cost $421,900, fair value at December 31, 2021. $547,200. Management intends to purchase more shares of Epee in two years. Epee earned $41,200 for the year ended December 31, 2021, and declared and paid dividends of $2,200, which sabre received at the end of each quarter in 2021. 4. Bond investment to be held to maturity: bonds of Ghoti Ltd., purchased at a cost equal to its face value of $319,700, fair value $346,400.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.1C: Leverage Cook Corporation issued financial statements at December 31, 2019, that include the...

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Orbit Limited Statement of Financial Position as at 31 December: 2022 2021 R R ASSETS Non-current assets 11 810 000 7 560 000 Property, plant and equipment 10 025 000 6 250 000 Investments 1 785 000 1 310 000 Current assets 4 190 000 4 690 000 Inventories 1 875 000 2 350 000 Accounts receivable 1 925 000 2 200 000 Cash 390 000 140 000 Total assets 16 000 000 12 250 000 EQUITY AND LIABILITIES Equity ? ? Ordinary share capital 5 480 000 3 680 000 Retained earnings ? ? Non-current liabilities 4 500 000 3 800 000 Loan (20% p.a.) 4 500 000 3 800 000 Current liabilities 2 300 000 1 500 000 Accounts payable 2 300 000 1 500 000 Total equity and liabilities 16 000 000 12 250 000 Statement of Comprehensive Income for the year ended 31 December: 2022 2021 R R Sales 10 800 000 7 150 000 Cost of sales (6 000 000) (3 650 000) Gross profit 4 800 000 3 500 000 Operating expenses (1 800 000) (1 200 000) Depreciation 580 000 200 000…
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