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Orcullo Ltd. had the following investment portfolio at January 1, 2020 Investment Quantity Cost per Share Fair Value at Dec. 31, 2019 Li Corp 900

Orcullo Ltd. had the following investment portfolio at January 1, 2020 Investment Quantity Cost per Share Fair Value at Dec. 31, 2019 Li Corp 900 $15.00 $12.50 Liang Corp. 800 20.00 17.50 Lin Corp. 600 9.008.20 During 2020 , the following transactions took place 1. 1. On March 1Liang Corp. paid a $2 per share dividend. 2. 2. On April 30, Orcullo sold 300 shares of Lin Corp. for $10 per share. 3. 3. On May 15, Orcullo purchased 200 more Li Corp. shares at $16 per share . 4. 4. At December 31, 2020, the shares had the following market prices per share: Li Corp. $17Liang Corp. $19; and Lin Corp. $8. Instructions a. Assuming that Orcullo Ltd. is a publicly accountable enterprise that accounts for its investment portfolio at FV-OCI (with no recycling to net income), prepare journal entries to record all of the 2020 transactions and year- end events . 14 marks b. Assume that only Liang Corp is held under the equity method with no year end revaluation and 2020 Net income (EPS) is $5 per share. Prepare the equity method journal entries for the year for Liang Corp.6 marks

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