1. Live Large Inc. had the following transactions involving non-strategic investments during 2023.
2023 Apr.1 Paid $104,050 to buy a 90-day term deposit, $104,000 principal amount, 7.0%, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 3,400 common shares of Blue Balloon Ltd. at $23.25. There was a $50 transaction fee included in the above-noted payment amount.June9 Purchased 2,200 common shares of Purple Car Corp. at $51.50. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 900 common shares of Yellow Tech Ltd. at $16.75. There was a $50 transaction fee included in the above-noted payment amount.July1 Purchased for $71,377 a 9.0%, $69,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 8.4%. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning December 31, 2023. Live Large Inc. plans to hold this investment until maturity. 3 Received a cheque for the principal and accrued interest on the term deposit that matured on June 30. 15 Received a $0.95 per share cash dividend on the Blue Balloon Ltd. common shares. 28 Sold 1,700 of the Blue Balloon Ltd. common shares at $27.00.Sept.1 Received a $2.50 per share cash dividend on the Purple Car Corp. common shares.Dec.15 Received a $1.55 per share cash dividend on the remaining Blue Balloon Ltd. common shares owned. 31 Received the interest on the Space Explore Inc. bond. 31 The fair values of Live Large Inc.s investments on this date were Blue Balloon shares, $25.00; Purple Car Corp. shares, $42.75; Yellow Tech shares, $17.05. Assume the fair value and the carrying value of the Space Explore bond were equal.2024 Feb.16
Sold the remaining Blue Balloon shares at $27.25. 2.
ohnson Inc.s non-strategic investment portfolio at December 31, 2022, consisted of the following:
Debt and Equity Investments*Cost Fair Value 11,900 Xavier Corp. common shares$194,565 $172,550 2,200 Young Inc. common shares 114,400 109,120 139,000 Zed Corp. common shares 45,700 41,300
*The fair value adjustments were recorded on December 31, 2022. Johnson had no other debt and equity investments at December 31, 2022, other than those shown above. During 2023, Johnson engaged in the following transactions:
2023 Jan.17 Sold 1,700 common shares of Young Inc. for $81,600. Johnson Inc. planned to hold these shares for less than one year.Mar.3 Purchased 6,900 common shares of Allen Corp. for $414,000. The shares represent a 30% ownership in Allen Corp.June7 Received dividends from Allen Corp. at the rate of $4.40 per share.Aug.14 Sold the remaining Young Inc. shares at $33.40.Nov.28 Purchased a 5% ownership in Davis Corp. by acquiring 11,900 common shares at a total of $105,910. Johnson Inc. will sell these shares in six to nine months.Dec.30 Sold 11,900 shares of Xavier Corporation for $190,400.Dec.31 Allen Corp. announced a net profit of $289,500 for the year.
