Birch Corp is a real estate developer with its headquarters

#3965
Birch Corp. is a real estate developer with its headquarters in Burlington, Ontario. As a result of
recent increases in land prices, Birch has accumulated a substantial amount of excess cash. It
is looking to invest in a building supply company, but has not yet found a suitable company. To
earn a reasonable return and to minimize risk, Birch invests its excess cash in common shares
of large, stable corporations. The following describes the events surrounding one of Birch’s
investments:1. On January 1, 2011, Birch paid $1,000,000 to purchase 100,000 common
shares of Poplar Inc.2. On December 27, 2011, Poplar declared and paid a dividend of $0.50
per common share.3. On December 31, 2011, the market value of the common shares was
$1,030,000.4. On June 30, 2012, Birch sold the common shares for $1,045,000.Required:Using
the following table, indicate the amounts to be reported on the balance sheet, through profit or
loss, and through other comprehensive income for 2011 and 2012 under two scenarios:a. Birch
designates the common shares as an available-for-sale (AFS) investment.b. Birch designates
the common shares as a held-for-trading (HFT) investment.
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Birch Corp is a real estate developer with its headquarters

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