Tingalo Inc Required:
A

question 29

Essay

Tingalo Inc. purchased three equity investments during the year ended December 31, 2020.
$$\begin{array} { | l | r | r | r | } \hline & \text { Investment A } & \text { Investment B } & \text { Investment C } \\\hline \text { Balance sheet value, Dec } 31,2020 & \$ 420,000 & \$ 28,000 & \$ 131,000 \\\hline \text { Dividends received } & 10,000 & 4,000 & 9,000 \\\hline \text { Dividend income } & 0 & 4,000 & 9,000 \\\hline \text { Total income (loss) recognized on the } & & & \\\text { investment } & 30,000 & 4,000 & ( 5,000) \\\hline \begin{array} { l } \text { Accumulated OCI on unrealized } \\\text { gains/osses }\end{array} & 0 & 8,000 \text { credit } &0 \\\hline\end{array}$$ Required:
a. Based on the available information, how did Tingalo classify each financial asset?
b. Determine the cost of each of the three investments. If it is not possible to do so with the available information, indicate what additional information would be needed.

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum quantity of one good that can be produced for each possible quantity of another good, given the available resources and technology.

Capital Equipment

Long-term, tangible assets acquired or used to produce goods and services, such as machinery, buildings, and vehicles.

Technological Knowledge

Information and expertise related to the practical application of science and engineering in creating products, processes, and services.

Per Capita Energy Consumption

The average amount of energy used per person within a specific area or country.