Oriole, Inc. had the following equity investment portfolio at January 1, 2020.Evers Company 970 shares @ $14 each $13,580 Rogers Company 910 shares @ $18 each 16,380 Chance Company 500 shares @ $9 each 4,500 Equity investments @ cost 34,460 Fair value adjustment (7,840)Equity investments @ fair value $26,620 During 2020, the following transactions took place.1. On March 1, Rogers Company paid a $2 per share dividend.2. On April 30, Oriole, Inc. sold 290 shares of Chance Company for $11 per share.3. On May 15, Oriole, Inc. purchased 90 more shares of Evers Company stock at $17 per share.4. At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $17, and Chance $8.During 2021, the following transactions took place.5. On February 1, Oriole, Inc. sold the remaining Chance shares for $8 per share.6. On March 1, Rogers Company paid a $2 per share dividend.7. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month.8. At December 31, 2021, the stocks had the following price per share values: Evers $20 and Rogers $19. Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021.Oriole, Inc.Balance Sheet (Partial)December 31, 2020December 31, 2021%24%24>

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Answered: Oriole, Inc. had the following equity…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 7E

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Oriole, Inc. had the following equity investment portfolio at January 1, 2020.

Evers Company	970 shares @ $14 each	$13,580
Rogers Company	910 shares @ $18 each	16,380
Chance Company	500 shares @ $9 each	4,500
Equity investments @ cost		34,460
Fair value adjustment		(7,840	)
Equity investments @ fair value		$26,620

During 2020, the following transactions took place.

1.		On March 1, Rogers Company paid a $2 per share dividend.
2.		On April 30, Oriole, Inc. sold 290 shares of Chance Company for $11 per share.
3.		On May 15, Oriole, Inc. purchased 90 more shares of Evers Company stock at $17 per share.
4.		At December 31, 2020, the stocks had the following price per share values: Evers $18, Rogers $17, and Chance $8.

During 2021, the following transactions took place.

5.		On February 1, Oriole, Inc. sold the remaining Chance shares for $8 per share.
6.		On March 1, Rogers Company paid a $2 per share dividend.
7.		On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month.
8.		At December 31, 2021, the stocks had the following price per share values: Evers $20 and Rogers $19.

Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2020 and 2021.
Oriole, Inc.
Balance Sheet (Partial)
December 31, 2020
December 31, 2021
%24
%24
>

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