Here are the questions:

On January 3,2020, Blue Spruce Limited purchased 3,700 (37%) of the common shares of Sonja Corp. for $533,740. The following information is provided about the identiable assets and liabilities of Sonja at the date of acquisition: Carrying Amount Fair Value Assets not subject to depreciation $502,000 $502,000 Assets subject to depreciation (10 years remaining) 782,000 892,000 Total identiable assets 1,284,000 1,394,000 Liabilities 82,000 82,000 During 2020, Sonia reported the following information on its statement of comprehensive income: Income before discontinued operations $176,000 Discontinued operations (net of tax) (78,000 ) Net income and comprehensive income 98,000 Dividends declared and paid by Sonja November 15, 2020 75,000 Assume that the 37% interest is enough to make Sonja an associate of Blue Spruce, and that Blue Spruce is required to apply IFRS for its nancial reporting. The fair value of Sonja's shares at December 31,2020, is $147 per share. Prepare thejournal entry to record Blue Spruce's purchase of the Sonja shares on January 3, 2020. (Hint: Any unexplained payment represents unrecognized goodwill of Sonja.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. if no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 3, :l 2020 Prepare all necessaryjournal entries associated with Blue Spruce's investment in Sonja for 2020. Depreciable assets are depreciated on a straight-line basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. if no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit ll ll (To record dividends collected) l l | l l (To record investment income or loss) %gl %%I (To record amortization of fair value difference) Prepare thejournal entry if you were informed that Blue Spruce's long-term business prospects had deteriorated and that the most Blue Spruce could expect to recover in the future or to sell its investment in Sonja for at December 31, 2020, is $114 per share. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. lf no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, I ' | | %ll