ii. Prepare the necessary journals for the year ended December 31 for Kevin S.A. in respect of its investment in Paris Holdings S.A.

0. Kevin S.A. purchased 80,000 shares, 25% of the outstanding shares of Paris Holdings S.A. for 2,500,000 on January 1. Paris Holdings S.A. paid a dividend of 1.25 per share on June 30 of the same year and recorded a net profit after tax of 576,000 for the year ended December 31.

   Required:

   i. Described what method should Kevin S.A. use to account for its investment in Paris Holdings S.A. Explain your answer.