Question

Tride Ltd. purchased 863 shares of Next Ltd. on July 1, 20x5 at $16.30 per share....

Tride Ltd. purchased 863 shares of Next Ltd. on July 1, 20x5 at $16.30 per share. On December 31, 20x5, the market value of the Next shares was $9.71 and on December 31, 20x6, the market value had increased to $13.28. On February 28, 20x7, the shares of Next Ltd. were sold for $24.74.

Assuming that the investment in the shares of Next Ltd. is classified as FVTPL, which of the following would be part of the February 28, 20x7 journal entry?

Select one:

a. Credit Gain on FVTPL Investments $9890

b. Debit Gain on FVTPL Investments $9890

c. Credit OCI - Gain on FVTOCI Investments $9890

d. Credit Retained Earnings $7284

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