At December 31, 2020, Swift Current Inc Assuming Swift Current Uses the Fair Value Through Other Comprehensive

question 2

Short Answer

At December 31, 2020, Swift Current Inc. has the following portfolio of common shares in which it does not have significant influence: $\begin{array}{c}\begin{array}{lll}\\\text { Apple Corp. }\\\text { Chester Inc.}\\\text { Dooley Ltd.}\\\\\end{array}\begin{array}{l}\underline{\text { Cost }}\\\$ 100,000 \\200,000 \\\underline{300,000}\\\$ 600,000 \end{array}\begin{array}{l}\underline{\text { FairValue }}\\\$ 120,000 \\205,000 \\\underline{500,000 }\\\underline{ \$ 825,000}\end{array}\end{array}$
Assuming Swift Current uses the fair value through other comprehensive income (FV-OCI) model to account for this portfolio of investments, the most informative entry to record the year-end adjustment is
a) PV-OCI Invertments ............................ $\quad 225,000$
Unrealized Gain or Loss-0CI ............................ $\quad 225,000$

b) $\mathrm { FV }$ -oCI Investment in Apple Corp..................20,000
$\mathrm { FV }$ -oCI lnvestment in Chester Inc............................ $\quad 5,000$
$\mathrm { F } V$ -0CI Invertment in Dooley Ltd.............200,000
Unrealized Gain or Loss-OCI on Apple Corp......................20,000
Unrealized Gain or Loss-0Cl on Cherter Inc....... $\quad 5,000$
Unrealized Gain or Loss-OCl on Dooley Ltd. $\quad \mathbf { 2 0 0 , 0 0 0 }$

c) Unrealized Gain or Loss-0Cl on Apple Corp.............. $\quad 20,000$
Unrealized Gain or Loss-0Cl on Chester lnc.............. $\quad 5,000$
Unrealized Gain or Loss-0CI on Dooley Ltd. .............. $\quad 200,000$
$\mathrm { FV }$ -OCI Investment in Apple Corp..............20,000
$\mathrm { FV }$ -OCI Invertment in Chester Inc..............5,000
$\mathrm { FV }$ -OCI Invertment in Dooley Ltd................200,000

d) Unrealized Gain or Loss-0CI............................225,000
$F V - 0 C$ Invetments..........................225,000

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