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Platinum Corporation reported the following transactions relating to its held for trading investments. Platinum Corporation follows IFRS and has elected to report held for trading investments under the fair value through profit and loss model.Jan 1 Purchased 1,200 Silver Corporation shares for $20 cash each.Jun 1 Received cash dividends of $0.50 per share on Silver Corporation shares.Sep 15 Sold 600 shares of Silver Corporation for $13,800 ($23 each).Dec 1 Received cash dividends of $0.75 per share on Silver Corporation shares.Dec 31 Silver shares were trading at $27 each.Instructions
a. Record the above transactions and events.
b. Indicate where any revenues and gains or losses (realized or unrealized) would appear in the financial statements.
Utility Theory
An economic theory that models how individuals make choices based on their preferences and the perceived utility or satisfaction from goods and services.
Marginal Utility
The additional satisfaction or benefit gained from consuming one more unit of a good or service.
Trading Cards
Collectible cards typically featuring individuals from sports, television, or other areas of popular culture, often traded and valued by enthusiasts.
Diminishing Marginal Utility
Declining utility, or satisfaction, derived from each additional unit consumed of a particular good or service.
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