13. On January 1, 2020, Flint Corporation purchased 40% of the common shares of Martz Limited for $197,000. Martz Limited shares are not traded in an active market. The carrying amount of Martzs net assets was $360,000 on that date. Any excess of the purchase cost over Flints share of Martzs carrying amount is attributable to unrecorded intangibles with a 20-year life. During the year, Martz earned net income and comprehensive income of $78,000 and paid dividends of $15,600. The investment in Martz had a fair value of $202,000 at December 31, 2020. During 2021, Martz incurred a net loss and comprehensive loss of $83,000 and paid no dividends. At December 31, 2021, the fair value of the investment was $141,000 and the recoverable amount was $150,000. Assume that Flint follows IFRS.

A. Prepare all relevant journal entries related to Flints investment in Martz for 2020 and 2021, assuming this is its only investment and Flint exercises significant influence over its associates policies. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
2020:
(To record investment purchase)
(To record collection of dividend)
(To record investment income)
(To record amortization of fair value difference)
2021:
(To record investment income)
(To record amortization of fair value difference)
(To record loss on impairment)

B. Illustrate how the statement of comprehensive income is affected in 2020.

Net income will include the Choose the answer from the menu in accordance to the question statement investment income from the associatedividend revenueinvestment loss from the associatecashinterest income of $Enter your answer in accordance to the question statement .

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List of Accounts

Illustrate how the statement of comprehensive income is affected in 2021.

Net income will include investment loss on the associateinvestment profit on the associate of $ and impairment lossimpairment profit of $ .

C. Prepare relevant journal entry related to Flints investment in Martz for 2020, if you were told that Martzs 2020 statement of comprehensive income included a loss from discontinued operations of $25,000 (net of tax)? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
(To record investment income)

D. Prepare the statement of comprehensive income if you were told that Martzs 2020 statement of comprehensive income included a loss from discontinued operations of $25,000 (net of tax)? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Martz Limited Comprehensive Income Statement December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020
Income from Continuing OperationsIncome from Discontinued OperationsLoss from Continuing OperationsLoss from Discontinued OperationsNet Income / (Loss)		$
Net Income / (Loss)Income from Discontinued OperationsLoss from Continuing OperationsLoss from Discontinued OperationsIncome from Continuing Operations
Income from Continuing OperationsIncome from Discontinued OperationsNet Income / (Loss)Loss from Continuing OperationsLoss from Discontinued Operations		$