Equity investment: An investment made in shares and is held to earn some income in the form of dividends and
Fair value: Fair value is a selling price which is agreed by the buyer and seller.
Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain.
An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss.
Dividend revenue: A portion of a company’s net profit distributed among the shareholders is dividend. The amount to be distributed is decided by the board of directors of the company. Dividend can be in the form of cash, stocks or property.
(a) To prepare: To prepare the
Given information: All the related information is provided in the question document.
(b) To determine: To determine the journal transactions, assuming that P can exercise significant influence over K.
Given information: All the related information is provided in the question document.
(c) To determine: To determine the amount to be reported as securities on the balance sheet and the total income.
Given information: All the related information is provided in the question document.
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