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Pascale Corp has the following securities all purchased in 2017 in its investment portfolio on December 31 2017 2500 Anderson Corp. common shares which cost

Pascale Corp. has the following securities (all purchased in 2017) in its investment portfolio on December 31, 2017: 2,500 Anderson Corp. common shares, which cost $48,750; 10,000 Munter Ltd. common shares, which cost $580,000; and 6,000 King Corp. preferred shares, which cost $255,000. Their fair values at the end of 2017 were as follows: Anderson Corp. $49,580; Munter Ltd. $569,500; and King Corp. $254,400. In 2018, Pascale complete the following transactions: 1. On January 15, sold 2,500 Anderson common shares at $21 per share less fees of $2,150. 2. On April 17, purchased 1,000 Castle Ltd. common shares at $33.50 per share plus fees of $1,980. The company adds transaction costs to the cost of acquired investments and deducts them from cash received on the sale of investments. On December 31, 2018, the fair values per share of the securities were as follows: have fair values that can be Munter $61; King $40; and Castle $29. Pascale s accounting supervisor tells you that all these securities have fair values that can be readily determined, but the company is not likely to actively trade them. Management accounts for them using the FV-OCI method without recycling. Ignore income taxes. Instructions: a) Prepare the entries for the sale of the Anderson Corp. Investment on January 15, 2018. b) Prepare the entry to record the Castle Ltd. share purchase on April 17, 2018. c) Calculate the unrealized gains or losses and prepare any required adjusting entry(ies) for Pas

Apr 21 2020 View more View Less

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