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I need help solving the attached question, some explanation would be highly appreciated

Thanks in advance

Consider the following data for intercorporate investments: Year Shares Purchased (Sold) Price/Share Jan 1 Price/Share Dec 31 20x1 200 $80 $70 20x2 (80) 60 83 All sales and purchases are assumed to occur on January 1. Price may vary from price on previous day (December 31). Investee earnings per share Investee dividend per share 20x1 $8 2 20x2 $9 2 Consider the Equity method for classifying investment Required: a. Show the B/S carrying amount for each of the 2 years if the investment is classified as (i) TRADING and (ii) EQUITY (Show calculations) (3 marks) Balance Sheet Carrying Value 20x1 20x2 TRADING EQUITY METHOD b. Show the total income recognized for each of the 2 years if the investment is classified as (i) TRADING and (ii) EQUITY METHOD (Show calculations) (5 marks) 20x1 20x2 TRADING EQUITY METHOD 1 Consider the following data for intercorporate investments: Year Shares Purchased (Sold) Price/Share Jan 1 Price/Share Dec 31 20x1 200 $80 $70 20x2 (80) 60 83 All sales and purchases are assumed to occur on January 1. Price may vary from price on previous day (December 31). 20x1 $8 2 Investee earnings per share Investee dividend per share 20x2 $9 2 Consider the Equity method for classifying investment Solution: 20x1 200 20x2 (200-80) = 120 Investee earning Dividend Trading AFS Price (200x80) =16,000 (120x60) = 7,200 (200x8) =1,600 400 difference (2,000) 2,760 Balance sheet carrying value 20x1 14,000 14,000 Equity method ( equity method) 20x1 -- 16,000 +1600 - 400 = 17,200 20x2 -- 7,200 +1,080 - 240 = 8,040 Trading AFS Equity method FV (200x70) = 14,000 (120x83) =9,960 (120x9) = 1,080 240 17,200 Income statement 20x1 -2000+400 = -1,600 400 1600 20x2 9,960 9,960 8,040 20x2 2,760 +240 = 3,000 240 1,080 1 Consider the following data for intercorporate investments: Year Shares Purchased (Sold) Price/Share Jan 1 Price/Share Dec 31 20x1 200 $80 $70 20x2 (80) 60 83 All sales and purchases are assumed to occur on January 1. Price may vary from price on previous day (December 31). 20x1 $8 2 Investee earnings per share Investee dividend per share 20x2 $9 2 Consider the Equity method for classifying investment Solution: 20x1 200 20x2 (200-80) = 120 Investee earning Dividend Trading AFS Price (200x80) =16,000 (120x60) = 7,200 (200x8) =1,600 400 difference (2,000) 2,760 Balance sheet carrying value 20x1 14,000 14,000 Equity method ( equity method) 20x1 -- 16,000 +1600 - 400 = 17,200 20x2 -- 7,200 +1,080 - 240 = 8,040 Trading AFS Equity method FV (200x70) = 14,000 (120x83) =9,960 (120x9) = 1,080 240 17,200 Income statement 20x1 -2000+400 = -1,600 400 1600 20x2 9,960 9,960 8,040 20x2 2,760 +240 = 3,000 240 1,080 1