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 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.

Instructions

1. 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.
2. Prepare the journal entries for Core for 2017, assuming that Core can exercise significant influence over ABC.
3. 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.