Prepare the journal entries

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Reference no: EM133017317

Question: At December 31, 2019, Alpha Corp. (Alpha) had one investment classified as FVOCI-elect. Alpha's policy is to transfer accumulated other comprehensive income to retained earnings upon derecognition of the FVOCI-elect investment. The FVOCI-elect investment, consisting of shares in Delta Inc., was purchased in 2017 at a cost of $165,000. The carrying value of the Delta Inc. shares at December 31, 2019, was adjusted to its fair market value of $120,000. During 2020, Alpha sold the shares of Delta Inc. for $100,000.

On April 30, 2020, Alpha acquired shares of Gold Inc. at a cost of $200,000. These shares were classified as FVOCI-elect, and the fair value of the shares at December 31, 2020, was $235,000. On July 1, 2020, Alpha purchased shares of Beta Corp. for $95,000. The fair value of the Beta Corp. shares on December 31, 2020, was $80,000. The shares of Beta Corp. are classified as fair value through profit or loss.

Alpha reports using IFRS and has a December 31 year end.

Required:

Prepare the journal entries for Alpha's 2020 transactions listed above.

Reference no: EM133017317

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