ON 30 June 20X2, King Ltd, purchased 10,000 shares of Prince Inc. for $12,000 plus $ 1,000 in commission. In 20X2 the company received $500 of dividends, and the shares had a fair value of $16,000 at the end of the year. In 20X3 there were no dividends, and the shares were sold for 422,000 less a $500 commission.

1. Prepare journal entries for 20X2 and 20X3

a. Assuming King reports under ASPE and has chosen the cost method.

b. Assuming King report under IFRS and classified the investment as fair-value-through-profit or loss.