Riverbed Inc acquired 108,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2023 for $637,200. At the time of purchase, Tahiti Ltd.'s depreciable assets were undervalued by $35,840. The depreciable assets had a remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.35 per share on July 31, 2023. Tahiti Ltd. reported $1.3 million as net income on December 31, 2023 for the year ending on this date. Assume that Riverbed Inc. is in a position to exercise significant influence over Tahiti Ltd, and that Riverbed follows IFRS. Prepare all the journal entries for 2023 in the books of Riverbed Inc. relating to above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date > > Account Titles and Explanation (To record investment income) (To record amortization of fair value difference) |||| TA Calculate the balance in Riverbed's "Investment in Tahiti: account at December 31, 2023." Investment in Tahiti $ Debit Credit
Riverbed Inc acquired 108,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2023 for $637,200. At the time of purchase, Tahiti Ltd.'s depreciable assets were undervalued by $35,840. The depreciable assets had a remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.35 per share on July 31, 2023. Tahiti Ltd. reported $1.3 million as net income on December 31, 2023 for the year ending on this date. Assume that Riverbed Inc. is in a position to exercise significant influence over Tahiti Ltd, and that Riverbed follows IFRS. Prepare all the journal entries for 2023 in the books of Riverbed Inc. relating to above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date > > Account Titles and Explanation (To record investment income) (To record amortization of fair value difference) |||| TA Calculate the balance in Riverbed's "Investment in Tahiti: account at December 31, 2023." Investment in Tahiti $ Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Riverbed Inc acquired 108,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2023 for
$637,200. At the time of purchase, Tahiti Ltd's depreciable assets were undervalued by $35,840. The depreciable assets had a
remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.35 per share on July 31, 2023.
Tahiti Ltd. reported $1.3 million as net income on December 31, 2023 for the year ending on this date. Assume that Riverbed Inc. is in a
position to exercise significant influence over Tahiti Ltd, and that Riverbed follows IFRS.
Prepare all the journal entries for 2023 in the books of Riverbed Inc. relating to above transactions. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no
entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Date
>
Account Titles and Explanation
(To record investment income)
(To record amortization of fair value difference)
Debit
Calculate the balance in Riverbed's "Investment in Tahiti: account at December 31, 2023."
Investment in Tahiti $
Credit
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