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NN Co. purchased 10,000 common shares of SS Inc. on January 1, Year 1 for $200,000. SS had 80,000 common shares outstanding. The following information

image text in transcribed NN Co. purchased 10,000 common shares of SS Inc. on January 1, Year 1 for $200,000. SS had 80,000 common shares outstanding. The following information relates to SS: 31 On January 1, Year 3, NN sold Investment in SS shares for $21 per share. NN has a December 31 year end. Required (show all calculations for full marks) i) Prepare the journal entries for Years 1 and 2 and on January 1, Year 3 assuming the following independent scenarios: (17 marks) a) Investor plans to sell the shares in the short term for profit b) Investor elects to use FVTOCI (include closing JE on January 1, Year 3) c) Investor has significant influence ii) How much is the change in Retained Earnings from January 1, Year 1 to January 1, Year 3 for each scenario? Show all \#s for each year to support your total change

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