Reference no: EM132459675

Dauphin D Corp. plans to purchase 121,000 shares of Santos Technology Ltd., a publicly traded company. Dauphin has signed a contract to acquire the shares from Holding Co. in 90 days, after certain approvals are obtained; these approvals are routine but time consuming. The agreed-upon price per share is $23.00, which is the fair value of the shares on the day the contract was signed. Santos shares have traded between $8 and $34 over the last year; the industry has been volatile. 60 days after signing this agreement, it is Dauphin's year-end, and Santos shares are trading for $30.00. At the time the contract matured, and the shares are purchased; the shares are trading for $16.00.

prepare journal entries:

Question a. Record the entry for change in fair-value at year end.

Question b. Record the entry for change in fair-value at maturity.

Question c. Record the entry for acquisition of shares of Santos Technology Ltd