Quiz1A[1] - Quiz 1A 1. 1 ($ in 000s) 648 648 96 Investment...

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Quiz 1A 1. 1 ($ in 000s) Investment in Austin shares 648 Cash 648 Investment in Austin shares (30% x $320,000) 96 Investment revenue 96 Cash (20,000 shares x $3) 60 Investment in Austin shares 60 Investment revenue [calculation below‡] ÷ 8 years) 6 Investment in Austin shares 6 ‡Calculations: Cost $648 Goodwill: $120 Fair value: $1,760* x 30% =$528 Undervaluation of assets: $48 Book value: $1,600 x 30% =$480 *[$1,600 + 160] = $1,760 2 ($ in 000s) Investment in Austin shares 648 Cash 648 Cash (20,000 shares x $3) 60 Investment revenue 60 Net unrealized holding loss on investments -- OCI ([20,000 shares x $32] – $648,000) 8 Fair value adjustment 8 2. (1) ($ in millions) 2009 March 1 Investment in Platinum Gems, Inc. shares 124 Cash 124 April 13 Investment in Oracle bonds 200
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Cash 200 July 20 Cash 3 Investment revenue 3 October 13 Cash 10 Investment revenue 10 October 14 Cash 205 Investment in Oracle bonds 200 Gain on sale of investments 5 November 1 Investment in SPI preferred shares
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Quiz1A[1] - Quiz 1A 1. 1 ($ in 000s) 648 648 96 Investment...

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