On January 1, Maverick Co. purchased 500 common shares of Western Ltd. for $50,000 plus a 1% commission of the transaction. On September 30, Western declared and paid a cash dividend of $2.25 per share. At year-end, the fair value of the shares was $108 per share. In early March of the following year, Maverick sold the shares for $57,000 less a 1% commission. The shares are not publicly traded, so Maverick will account for them using the cost method. Maverick follows ASPE.

Required:

a. Describe the type of investment and how it would be reported.

b. Prepare the journal entry for the purchase, the dividends received, and the sale, and any year-end adjustments, if required.

c. Assume now that Maverick follows IFRS and the investment in shares is accounted for as FVNI investment. Prepare the journal entry for the purchase, the dividends received, any year-end adjusting entries and the sale.

d. How would your answer to part

(c) change if Maverick follows ASPE and the shares are traded on an active market?