28. Laurel Limited purchased 40,000 common shares of Hardy Corp for $800,000. During the year, Hardy Corp reported net income of $200,000 and paid total dividends of $90,000. The fair value of the shares on Dec. 31 was $820.000. Instructions (a) Assume that the 40.000 shares represent a 10% interest in Hardy Corp and Laurel Corp has purchased this investment to generate capital gains. (10 marks) 1. Prepare the journal entry to record Laurel's investment in Hardy shares. 2. Prepare any entries that Laurel should make in accounting for its investment in Hardy shares during the year. 3. What is the balance of the investment account on Laurel's books at December 31? 4. What statement of income accounts were affected and by how much? (6) Repeat requirement (a) above except assume that the 40.000 shares represent a 40% interest in Hardy Corp. (10 marks) 29. Presented below are selected transactions for Fantazy Inc. for 2022: Jun 30 Sold another machine for $90,000 that was purchased on January 1, 2019. The machine cost $125,000 and had a useful life of 10 years with no residual value. Sep 30 Retired a business automobile (no proceeds) that was purchased on September 30, 2016. The car cost $30,600 and was depreciated on a 6-year useful life with a residual value of $3,600. Instructions a) Record all entries required because of the above transactions. Fantazy Inc. uses straight-line depreciation and has recorded depreciation through December 31, 2021. (15 marks)