On January 2, 2019, Alpha Corporation paid cash of RMB 210 million to acquire 25% of equity interests in Omega Corporation. Alpha also paid RMB 3 million of directly attributable transaction costs. On the acquisition date, the fair value of the identifiable net assets of Omega was RMB 920 million. The 2019 annual report of Omega shows a net income of RMB 24 million and other comprehensive income of RMB 10 million. Omega also declared cash dividends of RMB 20 million to all shareholders for the year of 2019 and the cash has not been received by Alpha in 2019.

On January 5, 2020, Alpha sold all shares in Omega and received cash proceeds of RMB 250 million.

1. Discuss the impacts of the equity investment on Alpha’s balance sheet and income statement for the year 2019. 

2. What is the accounting treatment for Alpha’s disposal of Omega on January 5, 2020?