Reference no: EM133052198

Question - Early in its 2022 fiscal year (December 31 year end), Hades Company purchased 10,000 Kronos Corporation common shares for $26.18 per share, plus $1,800 in brokerage commissions. These securities were accounted for at FV-OCI (with no recycling), and transaction costs were capitalized. In September, Kronos declared and paid a dividend of $1.02 per share, and on December 31, 2022, the fair value of these shares was $271,500. On April 13, 2023, Hades sold all the Kronos shares at a price of $28.10 each, incurring $1,925 in brokerage commissions on the sale.

Required - Prepare the entries to record

-The purchase of the Kronos shares,

-The receipt of the dividend,

-The fair value adjustment at December 31, 2022, and

-All entries associated with the disposal of the investment on April 13, 2023. The company reclassifies any gains or losses to Retained Earnings upon disposition of the securities. (Hint: In part 4, first bring the investment to its April 13 fair value net of the brokerage commission.)