Unformatted text preview: ibutable to goodwill.
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
1/4/2013 310,000,000 31*10million shares
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
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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.
- Spring '10