During 2014, National Tire Company Bought 5,000 Share of Ontario

question 86

Multiple Choice

During 2014, National Tire Company bought 5,000 share of Ontario Tire for $22.50.They received dividends of $1.50 per share during the year.At National Tire's year-end the shares had increased in value to $24.50.What would be the effect on National Tire's net income for the year if the shares were classified as
FVTPL or as FVTOCI?
$\begin{array}{ll}&\text { FVTOCI }&\text { Amortized cost }\\A.&\$ 12,500 & \$ 12,500 \\B.&\$ 12,500 & \$ 17,500 \\C.&\$ 17,500 & \$ 12,500 \\D.&\$ 17,500 & \$ 12,500\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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An individual who observes events or other people but does not participate directly in the activities.

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