Dolim Inc. acquired $24\%$ of the outstanding common shares of Dukat Inc. $($Dukat$)$ on December $31,2022.$ The purchase price was $$1,252,000$ for $61,700$ shares and is equal to $24\%$ of Dukat$$s carrying amount. Dukat declared and paid a $$0\mathrm{.}95$ per share cash dividend on June $15$ and again on December $15,2023.$ Dukat reported net income of $$533,000$ for$2023.$ The fair value of Dukat$$s shares was $$20\mathrm{.}75$ per share at December $31,2023.$ Dolim Inc. is a public company and applies IFRS.

Instructions

A$.$ Prepare the journal entries for Dolim Inc. for $2022$ and $2023,$ assuming that Dolim Inc. cannot exercise significant influence over Dukat. The investment is accounted for using the FV$-$OCI model.

B$.$ Prepare the journal entries for Dolim Inc. for $2022$ and $2023,$ assuming that Dolim Inc. can exercise significant influence over Dukat.