accounting

Core Transport Incorporated has been growing quickly over the past several years due to its perfect record in safely and quickly moving goods across the country. In order to finance 12 points Save Answe its recent growth it became a publicly listed company, and, as a result it must apply IFRS. The company has a December 31 year end. On January 1, 2017, Core purchased 20% of a company in Newport, Nova Scotia that manufactures packing crates, ABC Inc., for a price of $300,000. Core Transport considers this a significant influence investment, and has requested your help in accounting for it. At the time of purchase, the carrying amount and fair values of the packing company assets and liabilities are as follows. Carrying Amount Fair Value Cash $ 50,000 $ 50,000 Accounts receivable 100,000 100,000 Land 200,000 250,000 Building (10-year life remaining; no residual value) 350,000 500,000 Notes payable (125,000) (125,000) $575,000 $775,000 During the year, ABC reported income of $200,000, and paid a dividend to its common shareholders of $100,000. The fair value of the investment in ABC shares at December 31, 2017 was $315,000. OON PDuring the year, ABC reported income of $200,000, and paid a dividend to its common shareholders of $100,000. The fair value of the investment in ABC shares at December 31, 2017 was $315,000. Instructions A. Prepare the journal entries for Core for 2017, assuming that Core cannot exercise significant influence over ABC. The securities are accounted for using the fair value through net income (FV-NI) model. B. Prepare the journal entries for Core for 2017, assuming that Core can exercise significant influence over ABC. C. Prepare the journal entries for Core for 2017, assuming that Core cannot exercise significant influence over ABC and that the securities are eligible for the special election to be accounted for using the fair value through other comprehensive income (FV-OCI) model