On January 1, 2018, Sturge Enterprises Inc. held the following debt and equity investments: Security

On January 1, 2018, Sturge Enterprises Inc. held the following debt and equity investments: Security Quantity Cost per Unit Ajax Ltd. Shares…………3,000…………………….$11 Beta Corp. shares………..4,000………………………..7 During the year, Sturge made the following purchases: Security Quantity Cost per Unit Ajax Ltd. Shares………..2,400…………………$ 11 Ajax Ltd. Shares………..2,000……………………..9 Ajax Ltd. Shares………..2,000……………………10 Beta Corp. shares……….1,000……………………..8 Citrus Inc. bonds………….600…………………..100 There were no differences between cost and fair value at January 1, 2018. The market prices of the various securities at year end, December 31, 2018, were as follows: Ajax shares $6; Beta shares $9; and Citrus bonds $107 (this means 107% of maturity value). Instructions (a) Calculate the cost and fair value of Sturge Enterprises investment portfolio at December 31. (b) 1. If Sturge Enterprises considers its entire portfolio to be held for trading investments and uses the fair value through profit or loss model, at what value should these investments be reported on the statement of financial position at December 31? 2. At what amount, and where, should any unrealized gains or losses be reported? (c) 1. If Sturge Enterprises intends to hold the Citrus bonds until they mature and uses the amortized cost model, at what value

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