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MEG Corp Property Dividend Details

The document discusses an assumption where a company declared a property dividend of equipment on December 15, 2022 payable on January 15, 2023. The carrying amount was $3,500,000 but the fair value was $3,000,000 on the declaration date and $2,800,000 on December 31, 2022 and $2,500,000 on the payment date of January 15, 2023.

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Hanie Iguid
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12 views1 page

MEG Corp Property Dividend Details

The document discusses an assumption where a company declared a property dividend of equipment on December 15, 2022 payable on January 15, 2023. The carrying amount was $3,500,000 but the fair value was $3,000,000 on the declaration date and $2,800,000 on December 31, 2022 and $2,500,000 on the payment date of January 15, 2023.

Uploaded by

Hanie Iguid
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Assumption #2

On December 15, 2022, MEG Corporation declared a property dividend of equipment


payable on January 15, 2023.

The carrying amount of the equipment is 3,500,000 and the fair value is 3,000,000 on
December 15, 2021.

However, the fair value of the equipment is 2,800,000 on December 31, 2021, and 2,500,000
on January 15, 2022.

Assumption 2

Date Particulars
Date of Declaration
2022
Dec. 15 Retained Earnings 3,000,000
Property dividends payable 3,000,000

End of reporting period


Dec. 31 Property dividends payable 200,000
Retained earnings 200,000

Impaired loss (Cost – fair value on Dec. 31, 2022) 700,000


Equipment 700,000
Date of payment
2023
Jan. 15 Property dividends payable 300,000
Retained earnings 300,000

Property dividends payable 2,500,000


Loss on distribution of property dividends 300,000
Equipment 2,800,000

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