Canada Company Had the Following Activity with Respect to Investments

question 38

Essay

Canada Company had the following activity with respect to investments in common shares in the past year.Canada does not trade securities as part of its normal business operations.
Alberta Enterprises Inc.
Canada bought 10% of the 200,000 common shares of Alberta Enterprises at a total cost of $13.00 per share on March 1st.On July 31st Alberta declared and paid a $75,000 cash dividend.On December 31st Alberta reported net income of $122,000 for the year and the market price of its shares was $15.00.
Manitoba Corp.
Canada bought 30% of the 30,000 outstanding common shares of Manitoba Corp on January 1st at a cost of
$9.00 per share.Manitoba declared and paid a cash dividend of $36,000 on June 30th.On December 31st Manitoba reported net income of $85,000 for the year and the market price of its shares was $10.50.Ontario Ltd.
On February 28th Canada created Ontario Ltd to market and distribute its products in eastern Canada.Canada is the sole shareholder of Ontario.Ontario declared and paid a dividend of $10,000 on October 31st.On December
31st Ontario reported net income of $50,000 and the market value of their shares was unknown.
Required:
For each of Canada's investments determine what would be reported on their financial statements, you may ignore the cash flow statement, for the year.

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Definitions:

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Device Driver

Software that facilitates the communication between a device and its operating system.