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I need to know how they derived these solutions please. The solutions are below.

U. Repeal Tequirement (3), assuming tidl vull the livestrells were originally FVTOCI investments. Include the balance of the AOCI equity reserve for he for the SFP amounts. The holding gain amounts are not reclassified after reali riginally designated rve for holding gains ied after realization ring transactions and infor nnect A11-12 Fair Value Method: London Ltd. reported the following transactions mation regarding the shares of Dolma Corp: 15 October 20X2, purchased 3,000 shares at $42 per share plus $1,200 commi 1 December 20X2, received $0.50 per share cash dividend. 31 December 20X2, fair value is $38 per share. 1 December 20X3, received $0.50 per share cash dividend. 31 December 20X3, fair value is $45 per share. 15 November 20X4, sold 1,000 shares at $41 per share less $450 commission. 1 December 20X4, received $0.50 per share cash dividend. 31 December 20X4, fair value is $40 per share. Required: 1. Show the amounts and accounts that would be reported in earnings and the statement of financial position for 20X2, 20X3, and 20X4 if the company uses the a. Cost method. b. FVTPL method. c. FVTOCI method; realized amounts are transferred to retained earnings. 2. Explain when each of the above methods would be appropriate for this investment would change by the $21,900 net holding gains recorded in the year. Assignment 11-12 (WEB) Requirement a. Cost method Earnings Dividende Feed s expense Loss on sale (1) Statement of financial position Investment (3.000 x 542) +$1.200:23 in 20x4$127.2005127.200 S OCE: Holding in loss) (1) cost of ($127.200 x 1/3) = $42,400 vs net proceeds S40,550 ((1,000 x 41) - S450) b. FVTPL method 2022 2023 2024 Earnings Dividend revenue $1.500 $1,500 $ 1.000 Fees and commissions expense 1.200 Holding gains (losses 1) (12.000 21.000|14.4503 Statement of financial position Investment (S3: $45: $40 for 2.000 shares 114,000 $135,000 ,000 OCT: Holding rain (loss) (1) 3,000 X (S38 - $42); ($45-$38) x 3,000; 2,000 x ($40-S45) + (1,000 (S41-545) plus $450 in commission) c. FVTOCI-Equity method 2022 2023 2024 SI SO Si Soos 1000 Earnings Dividend revenue Fees and commissions expense Holding gains (losses) Statement of financial position Investment (S3 S45 S40 for 2.000 shares 114, 135 sec 1320017 006650 OCE Holding a Ross 1) Transfer RE (1) 20x2: S127.200 - S114,000 = $13,200 loss, 20x3: ($135,000 - $114,000) = $21,000 + ($13,200); 20x4: ($14,000 FVTPL loss +($450 comm) + $7,800 opening; 20x4: realized cost of ($127,200 x 1/3) = $42,400 vs net proceeds $40,550 ((1.000 x $41) - S450) Proof of S4,800 = cost of 2,000 shares = $84,800 - fair value $80,000 Requirement 2