On January 1, 2023, XYZ Co. purchased 500 common shares of ABC Ltd. for $50,000 plus a 1% commission of the transaction. On September 30, ABC declared and paid a cash dividend of $2.25 per share. By the end of the year, the shares were worth $108 per share. In early March of the following year, XYZ Co. sold the shares for $57,000 less a 1% commission. The shares are not publicly traded, so XYZ Co. will account for them using the cost method. XYZ Co. follows ASPE.

1. Prepare the journal entry for the purchase, the dividends received, and the sale, and any year-end adjustments, if required.

2. Assume now that XYZ Co. follows IFRS and the investment in shares is accounted for as FVPL investment. Prepare the journal entry for the purchase, the dividends received, any year-end adjusting entries and the sale.

3. How would your answer to part (b) change if XYZ Co. follows ASPE, the investment is accounted for as a FVNI investment, and the shares are traded on an active market?