Question 3 June 15, 2017 Not yet answered P declared a dividend of 53773 shares

Question

Question 3 June 15, 2017 Not yet answered P declared a dividend of 53773 shares of its investment in S, an unrelated party payable on June 30, 2017 the carrying amount on P's books of S's was $28 per share the market value of S's was $20 per share Marked out of 5.00 Flag question a. On the declaration date, June 15, 2017 the investment in S will increase/(decrease) by: investment in S will increase/(decrease) by: increase/(decrease) by: b. On the declaration date, June 15, 2017 the gain/(loss) for c. On the declaration date, June 15, 2017 retained earnings will d. On the declaration date, June 15, 2017 dividends payable will increase/(decrease) by: e. On the payment date, June 30, 2017 dividends payable will increase/(decrease) by: f. On the payment date, June 30, 2017 investment in S will increase/(decrease) by:

Explanation / Answer

Part A

Decrease by (1075460)

(53773*20) by the amount of fair value

Part B

Loss by (430184)

Difference between fair value and carrying Value = (53773*8)= 430184

Part C

Decrease by (1075460)

Part D

Increase by 1075460

Part E

Decrease by (1075460)

Part F

Decrease by (1075460)

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