Practice Problem 2 (25 minutes) On January 2, 2020, Baleine Ltd. acquired 19% of the outstanding voting shares of Golf Inc. for $240,000 plus directly attributable transaction costs related to the transaction of $5,000. The fair value of Golf's identifiable net assets at acquisition date was $570,000, which equalled their carrying value. Relevant information for the year ended December 31, 2020, follows: Golf Inc. Net income (loss) $ 70,000 Dividends declared and paid 50,000 Market value of investment 260,000 Baleine negotiated for one of the five seats on Golf's board of directors as part of the transaction. The rest of Golf's shares are widely held. Baleine also committed to increase purchases of supplies from Golf by $30,000 annually. Baleine reports under IFRS. Req a) Determine whether Golf is an associate of Baleine's, using case facts to support your analysis. Use the IAR approach for your response. b) Assuming that Golf is an associate of Baleine's, prepare journal entries related to its investment in Golf for the year ended December 31, 2020, including the journal entry to record the acquisition. c) Assuming that Golf is an associate of Baleine's, determine the balance in the investment in associate (Golf) account as at December 31, 2020, to be reported on Baleine's statement of financial position (SFP)