PLEASE ANSWER THE COMPLETE QUESTION. DO NOT SKIP ANY PARTS. ANSWER EACH PART STEP BY...
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PLEASE ANSWER THE COMPLETE QUESTION. DO NOT SKIP ANY PARTS. ANSWER EACH PART STEP BY STEP. EXPLAIN HOW YOU ARRIVED AT THE ANSWER. I need clear, handwritten solutions
On March 31, 2016 Colby Labs, Inc. purchased 3,000 shares of Pheasant Corp common stock for S10 per share. On September 30, 2016, Colby Labs received a $1.00 per share dividend. The fair value of the stock was S11 per share and $8 per share on December 31, 2016 and December 31, 2017, respectively. Pheasant Corp reported net income of $.35 and $.45 per share for 2016 and 2017 respectively Required l. Provide the journal entries for the following transactions, assuming: the investment is classified as an available-for-sale security (AFS) the investment is classified as a trading security (TS) Colby Labs owns 30% of all outstanding shares of Pheasant Corp a. Purchase of the securities, 3/31/16 b. Receipt of dividend, 9/30/16 c. Year-end adjusting entries at 1231/16. d. Year-end adjusting entries at 12/31/17. e. Sale of all shares, 4/1/2018. Assume the sale price was $23,000. 2. For each method, calculate the total income or loss recognized on the income statement over the life of the investment
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