Multiple Choice Questions 1. Company A owns 10% shares of Company B. Both companies reside in Bangladesh. Company A has a plan to sell the shares of Company B within a year. Which one of the following statements is CORRECT? (1 Point) Company A should follow cost method for it: investment in Company B. Company A should follow fair value method for its investment in Company B. Company A should follow equity method for its investment in Company B. Company A should follow any method for its investment in Company B. 2. Company X has significant influence over Company Y. Company Y will be called a(an) of Company X. (1 Point) associate O parent subsidiary structured entity Sun Company Sun Company purchased 1,000 shares of Moon Company from stock market on January 1, 2021. Moon's shares were trading at Tk. 85 per share on that date. Moon had total 5,000 shares outstanding and being actively traded in the market immediately before Sun's purchase. On December 31, 2021, Moon Company's shares traded at Tk. 97 each on the stock exchange. The income statement prepared by Moon's accountant showed that Moon had earned a net profit of Tk. 20,000 in year 2021. Moon Company's board of directors had also declared a cash dividend of Tk. 10,000 on December 31, 2021. Both companies' financial years end on December 31. 3. Record journal entry in Sun Company's book on January 1, 2021, when shares were purchased. (1 Point) Enter your answer 4. Assuming that Sun follows Cost method, write down the journal entry in Sun's book when it received cash dividends from Moon. (1 Point) Enter your answer 5. Assuming that Sun follows Cost method, how much will be the Investment account balance that Sun Company should report at year end on its Dec 31, 2021 Balance Sheet? (1 Point) Enter your answer 6. Assuming that Sun follows Fair Value method, how much is the revaluation gain or loss at the end of the year 2021? Show your calculation. (1 Point) Enter your answer 7. Assuming that Sun follows Fair Value method, write down the adjusting journal entry in Sun's book to update the Investment account balance. (1 Point) Enter your answer 8. Assuming that Sun follows Equity Method, write down the adjusting journal entry in Sun's book to record the income from investment in Moon. (1 Point) Enter your answer 9. Assuming that Sun follows Equity Method, write down the journal entry in Sun's book when it received cash dividends from Moon. (1 Point) Enter your answer 10. Assuming that Sun follows Equity Method, how much will be the balance in Investment account that Sun should report at year end on its Dec 31, 2021 Balance Sheet? Show your calculation. (1 Point) 1 Enter your answer 11. In which section of a multi-step income statement dividend income is reported as per IFRS? (1 Point) Enter your answer 12. In which section of a multi-step income statement revaluation gains or losses are reported as per IFRS? (1 Point) Enter your