On December 1, 2021, WAL acquired 48% of the shares of Cube Inc. (CI). The remaining 52% of CI are widely held and no other single investor owns up to 5% of the shares of CI. CI is a publicly listed corporation and major distributor of industrial products across Canada. WAL paid cash of $15 million and issued 20,000 shares of WAL with a fair value of $100 per share on the acquisition date. WAL incurred share issue costs of $120,000, and other legal and consulting costs of $90,000. VEL added the total of these costs which amounted to $210,000 to the cost of the investment, and plans to amortize the costs over 5 years. The shares issued to CI by WAL do not gave CI any significant influence over WAL activities or operations. The purchase agreement also states that if the market price per share of WAL is below $100 two years from the date of the agreement, WAL will issue additional 1,000 shares of WAL to CI. WAL predicts that there is 50% probability that WAL shares will trade below $100 at that time (i.e. two years from agreement date). On the acquisition date, CI had 400,000 shares and the book value of net identifiable assets of CI Inc. was $28 million. In addition, the fair value of CI was equal to book value except for a building, which had a useful life of 40 years on that day and a fair value greater than its carrying amount by $840,000. The share price of CI was $80 per share on that date. WALs investment in CI is recorded at cost in the financial statements of WAL.

Address the accounting implications and issues in the scenario above.