At the end of 2024, SilverLine Corp, with one subsidiary, had a holding representing 21% of the equity of BlueOcean Ltd, a shipping company. It had cost $92,000 when purchased at the start of 2023. At the time of that investment, BlueOcean Ltd had net assets of $750,000 which increased to $1,100,000 by the end of that year. At the start of the current year, the investment was increased by a further 11% of the equity at a cost of $125,000.

(a) How would the investment be shown in the financial statements if it were treated as a trade investment? (b) How would the investment be shown in the financial statements if it were treated as an associated undertaking? (c) Evaluate the financial impact on SilverLine Corp if BlueOcean Ltd records a 15% increase in net income.