Innovation Corp. is a private company selling accounting software to small businesses. In the year of 2021, Innovation Corp. has purchased two stocks for investment purposes for the first time. Both stocks are traded on the Toronto Stock Exchange, and the company holds the two stocks for trading purposes. The following are the purchase cost and the fair value at December 31, 2021 for the two stocks. Cost Fair Value Stocks Ferri Corporation common shares (3,000 shares) Lord Land Inc. preferred shares (2,000 shares) $40,000 $46,000 25,000 $65,000 22,000 $68,000 Dividends were declared on both stocks during the year as follows: (1) Ferri Corporation, $0.10/share; and (ii) Lord Land Inc., $0.05/share. Required: a) State which accounting model Innovation Corp. should use to measure the two stock investments. (1 mark) b) Prepare all necessary journal entries for 2021. (9 marks)