1. Prepare all journal entries relating to these investments, which are accounted for as fair value through profit and loss (FVTPL) for 2019. b) Prepare all journal entries relating to these investments, which are accounted for as fair value through profit and loss (FVTPL) for 2020. c) Briefly discuss why investments designated as fair value through profit and loss (FVTPL) are valued at current market value while other assets such as property, plant and equipment remain at cost and are not adjusted to fair market value.

Paragraph Radical Resources Inc. [Radical], which has a December 3ist year-end, is a mining company that recently raised $5.000,000 from a public financing. The Board of Directors has instructed its CFO to invest up to 4,000,000 in investments that it has designated as fair market investments through Profit and Loss(FVTPL]. On the advice of the company's investment advisor, the following shares were purchased in October 2019 Investment Share Total Cost Giggle Inc 40,000 1,000,000 Mayflower Bank 30,000 Samex Mines Ltd 100,000 100 000 In 2020, Radical completed the following transactions January 15 50,000 shares of Samex Mines Ltd. were purchased for $125,000 February 27 Radical received cash dividends of $30,000 from its investment in Mayflower Bank March 22 6,000 shares of Mayflower Bank were sold at $95 per share June 17 85,000 shares of Lexus Resources were purchased at $17.50 per share September 25 125,000 shares of Sames Mines Ltd. were sold for net proceeds (i.e. after commissions) for $300,000. [For the purposes of determining the cost of shares sold, use the weighted average cost) As part of its banking arrangement, the company pays no commission on the purchase of shares but is charged a 1.5% commission on the sale of all investments. Market Price of investments - presented on a per share basis Investment Jan 01, 2019 Dec 31, 2019 Dec 31, 2020 Giggle Inc $20.00 642.00 $ 57.00 Mayflower Bank |27.00 42 Bamex Mines Lid 1.50 2.00 Lexus Resources 9.00 0.75 11.00 17.00