12 Equity Method and FV option

Prepare all appropriate journal entries related to

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Unformatted text preview: ibutable to goodwill. Required: 1. Prepare all appropriate journal entries related to the investment during 2013, assuming Runyan accounts for this investment under the fair value option in a manner similar to what they would use for trading securities. 2. What would be the effect of this investment on Runyan's 2013 net income? FV of shares Cost 1/4/2013 310,000,000 31*10million shares 324,000,000 (14,000,000) Investment in Lavery Co Cash 324,000,000 >Purchase 324,000,000 12/31/2013 No entry to recognize income 12/31/2013 Net unrealized holding loss-I/S FV adjustment 14,000,000 12/31/2013 Cash Investment Rev 20,000,000 14,000,000 >Dividends 20,000,000...
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This note was uploaded on 03/03/2013 for the course ACC 321 taught by Professor Bukowy during the Spring '10 term at UNC Pembroke.

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