On January 1, 2017, Melbourne corporation, a public company, acquired 15,000 of the 50,000 outstanding common shares of Noah Corp. for $25 per share.The statement of financial position of Noah reported the following information at the date of acquisition:

Assets not subject to depreciation $290,000

Assets subject to depreciation860,000

Liabilities150,000

Additional information

1)On the acquisition date, the fair value is the same as the carrying amount for the assets that are not subject to depreciation and for the liabilities.

2)On the acquisition date, the fair value of the assets that are subject to depreciation is $960,000.These assets had a remaining useful life of eight years at that time.

3)Noah reported 2017 net income of $100,000 and paid dividends of $5,000 in December 2017.

4)The fair value of Noah's shares is $24 per share on December 31, 2017.

Required:

a)Prepare the journal entries for Melbourne Corporation for 2017, assuming that Melbourne can exercise significant influence.

b)Prepare the journal entries for Melbourne Corporation for 2017, assuming that Melbourne cannot exercise significant Influence and chooses the FV-OCI method.