On 30 April 2021, Indigo Company purchased 4,000 shares of Bingo Ltd for $17 per share plus $400 in commission. In 2021, the company received 0.65 per share in dividend and the shares had a fair value of $16 per share at the end of the year. In 2022 the dividend was 1.05 per share and the fair value was $20 per share at the end of the year. In 2023, the shares were sold for $18 per share less a $550 commission.

Required:

1. Using the appropriate table, show the amount and accounts that would be reported in earnings and the SOFP for 2021,2022 and 2023 if the company uses the following:

a. Cost method (3 marks)

b. FVTPL method (5 marks)

c. FVOCI-Equity method, realized amounts are transferred to retained earnings (4 marks)

2. Which of each of the above methods would be appropriate for this investment. (3) marks