Ex6.4 On January 1, 20X5, Invest it right Corp. (IIRC) made a number of investments, as detailed below: a) The company acquired 300,000 common shares in Ash Inc. for $5 cash per share. This shareholding is a passive investment. IIRC's management did not make any specific elections with respect to the classification of this investment b) IIRC purchased 10,000, $25, 4% preferred shares in Trish Inc. for $250,000. IIRC irrevocably elects to classify this investment at FVOCI-elect. c) IIRC paid $4,887,718 for $5 million 3.5% semi-annual bonds issued by Fairy Corp. that mature in five years. The objective of the company's business model for this type of asset is to hold the investment for the purpose of collecting the contractual cash flows Required: Prepare the journal entries for IIRC to initially recognize each of the three investments. Ex6.5 Tradesmart Inc. acquired 625,000 ordinary shares in Growbig Ltd. in early 2018 for $1,800,000. The fair value of the shares was as follows: December 31, 2018 $3.01 per share December 31, 2019 $3.12 per share The shares were sold on January 1, 2020, for $3.07 per share. Net proceeds have been credited to "other income." No other entries have been made relating to the sale. Required: a) Assume that Tradesmart purchased these shares to hold for trading purposes. Prepare the journal entries for the years ended December 31, 2018, 2019 and 2020. b) Assume that Tradesmart elects to recognize these shares as fair value through other comprehensive income (FVOCI). Prepare the journal entries for the years ended December 31, 2018, 2019 and 2020. Assume that Tradesmart elects to recycle the amounts previously classified in other comprehensive income (OCI) to retained earnings