journal entry

Question 2 (9 points) On January 1, 2020, DD Company acquired 60,000 shares of PP Limited at $5 per share, representing 1% of PP's outstanding voting shares. On July 31, 2020, PP declared and paid a dividend of $1 per share. PP's net income for 2020 was $2,800.000. On December 31, 2020, the shares of PP were trading on the Toronto Stock Exchange at $16 per share. On January 15, 2021 all of the shares were sold for $18 per share. Required: Provide the journal entries on CC's books relating to its investment in PP for 2020 and 2021 assuming that DD classifies PP as Fair Value Net Income (FVNI or FVPL)