Duncan Inc. (DI) is a chemical manufacturer located in Southwestern Ontario. The company develops and produces a variety of chemicals that are sold to manufacturing companies across the country.
Their products are primarily used in commercial and household cleaners, but are also used to make other chemicals, such as paints, stains, and glues. DI is owned by Mary and Genavive Duncan. Mary and Genavive are approaching retirement and have just entered into talks with one of Duncan’s key customers, Bayfield Inc. Bayfield is looking to buy DI in order to expand their operations. 

It is now the end of the 20X4 fiscal year and Mary and Genavive are looking to “clean up” their accounting records in order to get “top dollar for the sale of DI.” DI prepares its financial statements in accordance with ASPE.
You are a professional accountant hired to help DI prepare its year-end financial statements. The following issues have been brought to your attention for the current year:
1. The company has depreciated their assets using CCA classes as this makes preparing their tax return easier. Mary and Genavive are wondering if they can forgo taking depreciation for the year, or switch to another method that doesn’t have such a high rate.
2. DI has approximately $50,000 invested in dividend paying stocks (listed on the TSX). Duncan's portfolio is considered passive. The shares were purchased consistently over the last 5 years, and all have increased in value. 20X2 and 20X3, in particular were exceptional years from a gain perspective. Mary was told by a friend that she has the option to record
these investments at fair value. She has asked you to explain whether this is allowed, and if DI can record the cumulative gains in current-year earnings.
3. At the beginning of 20X3, DI purchased 25% of the shares of Judo Ltd, a private company. At the time of purchase, DI recorded the investment at cost but they would now like to change to the equity method. Judo reported earnings of $300,000 in 20X3 and $120,000 in 20X4.

Required:
Prepare the report.