Case X

• Company A purchased 5000 shares of Company B on January 1, 2020 for $52 per share
• Company A paid a commission of $ 4,000 to purchase the shares
• The fair value at December 31, 2020 was $ 60 per share.
• Company B paid a dividend in 2020 of $2 per share
• Company A sold 2500 Company B shares on December 31, 2021 for $ 58 per share.

Question 1a)

Required: Using the FV-NI method under IFRS prepare journal entries for 2020 and 2021.

Question 1b)

Required: Using the FVOCI method under IFRS prepare journal entries for 2020 and 2021.