Question #1: On January 1, Year 1, Head Ltd. purchased 50,000 common shares, representing 40% of the outstanding shares, of Toe Ltd. for $800,000.

Question #1: On January 1, Year 1, Head Ltd. purchased 50,000 common shares, representing 40% of the outstanding shares, of Toe Ltd. for $800,000..

ii) Regardless of your answer to i), assume they should report some kind of gain or loss. What would be the amount of the gain or loss? Show calculations for possible part marks. Please highlight your final figure in yellow, and clearly indicate if it is a gain or a loss.

Question #1: On January 1, Year 1, Head Ltd. purchased 50,000 common shares, representing 40% of the outstanding shares, of Toe Ltd. for $800,000.

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