Reference no: EM132911751

Question - The following are two independent situations:

Bridgeport Inc. received dividends from its common share investments during the year ended December 31, 2020, as follows:

A cash dividend of $12,600 is received from Peel Corporation. Bridgeport owns a 3% interest in Peel.

A cash dividend of $72,800 is received from Vonna Corporation. Bridgeport owns a 28% interest in Vonna and a majority of Bridgeport's directors are also directors of Vonna Corporation.

A cash dividend of $87,900 is received from Express Inc., a subsidiary of Bridgeport.

Determine how much dividend income Bridgeport should report on its 2020 consolidated statement of comprehensive income.

Dividend income to be reported by Bridgeport Inc. $ enter a dollar amount of Dividend income to be reported by Bridgeport Inc.

On April 11, 2020, Sarasota Corp. purchased as a long-term investment (accounted for using FV-OCI without recycling) 6,500 common shares of Roddy Ltd. for $81 per share, which represents a 6% interest. On December 31, 2020, the shares' market price was $87 per share. On March 3, 2021, Sarasota sold all 6,500 shares of Roddy for $106 per share.

Assume that all companies follow IFRS.

Determine the amount of the gain or loss on disposal that should be included in Sarasota's net income in 2021 and in its other comprehensive income. The investment in Roddy Ltd. was Sarasota Corp.'s only investment.

Prepare the general entries for situation 2 for 2021.