Reference no: EM132801338

Question - Gamma Securities Corporation (GSC) is a public company with a December 31 year-end. GSC has never reported other comprehensive income (OCI) from a previous period on its Statement of Comprehensive Income. On April 30, 2018, GSC purchased for cash 6,000 shares of Bishop Ltd. for $13 per share. In addition, GSC paid a commission of $600 on this transaction. On November 30, 2018, GSC received a $0.45 per share dividend on the Bishop shares. On December 31, 2018, the Bishop shares had a fair value of $11 per share.

On November 30, 2019, GSC received a $0.62 per share dividend on the Bishop shares. On December 31, 2019, the Bishop shares had a fair value of $15 per share.

On January 31, 2020, GSC sold all of the Bishop shares for $16.50 per share less $700 paid as a commission. Disregard income tax implications.

Required -

(a) Assume Gamma Securities Corporation classifies this investment under the Cost Model. Complete the table below, where appropriate, by determining the amounts to be reported on Gamma's Statement of Financial Position and Statement of Comprehensive Income with respect to the accounts listed for the years 2018, 2019, and 2020.

(b) Assume Gamma Securities Corporation classifies this investment under the FV-NI Model. Complete the table below, where appropriate, by determining the amounts to be reported on Gamma's Statement of Financial Position and Statement of Comprehensive Income with respect to the accounts listed for the years 2018, 2019, and 2020.

(c) Assume Gamma Securities Corporation classifies this investment under the FV-OCI Without Recycling Model. Complete the table below, where appropriate, by determining the amounts to be reported on Gamma's Statement of Financial Position and Statement of Comprehensive Income with respect to the accounts listed for the years 2018, 2019, and 2020.