On January 1, 2018, Peel Ltd. purchased 30,000 of Sticky Inc.'s 250,000 outstanding voting shares for $450,000. At December 31, 2018, shares of Sticky were trading at $12.00 per share. On January 1, 2019, Peel purchased an additional 32,500 shares of Sticky Inc. on the open market for $390,000. On that date, Sticky's common stock and retained earnings were valued at $1,000,000 and $850,000 respectively. On that date, Sticky's carrying values were equal to its fair market values with the exception of the company's equipment, which was overvalued by $60,000. The equipment's estimated useful life was 6 years on this date. Both companies use straight line amortization exclusively. During 2019, Peel sold $50,000 inventory merchandise to Sticky with a profit margin of 30%. Tax rate is 30%. All of this merchandise remained in Sticky's inventory at the end of 2019. At December 31, 2018, shares of Sticky were trading at $13.50 per share. Sticky's net income and dividends for 2018 and 2019 are as follows: Net Income Dividends 2018 $120,000 2019 $110,000 $30,000 $50,000 Required: Prepare the journal entries for 2018 and 2019. Determine and state the method of accounting required for the investment in accordance with IFRS. Show all calculations for full marks.