Find Online Tutors for Homework Help

On December 31 20X5 Gretta Inc which reports its financial results in accordance with IFRS had an investment

Question

On December 31, 20X5, Gretta Inc., which reports its financial results in accordance with IFRS, had an investment

at FVOCI-elect in Gidget Corp. Gretta initially paid $13,000 for the investment. Its fair value at December 31, 20X5, was $14,000. On February 15, 20X6, Gretta sold its investment in Gidget for $14,600. Gretta’s policy is to transfer previouslyunrealized holding gains and losses to retained earnings when the investment is derecognized.

What is the journal entry to record the sale of the investment in Gidget?

Financial Accounting