On January 1, 2021, Melbourne corporation, a public company, acquired 15,000 of the 50,000 outstanding common shares of Noah Corp. for $25 per share.

Noah reported 2021 net income of $100,000 and paid dividends of $5,000 in December 2021.

The fair value of Noahs shares is $24 per share on December 31, 2021.

Required:

1. Prepare the journal entries for Melbourne Corporation for 2021, assuming that Melbourne can exercise significant influence.
2. Prepare the journal entries for Melbourne Corporation for 2021, assuming that Melbourne cannot exercise significant Influence and chooses the FV-OCI method.