Problem 1 on Equity Method Imogen Ltd acquired 20% of the ordinary shares of Alison Ltd on 1 January 2013. At this date, all the identifiable assets and liabilities of Imogen Ltd were recorded at fair value. An analysis of the acquisition showed that $2,000 of goodwill was acquired. Imogen Ltd records its investment in Alison Ltd using equity method. In the year ended 31 December 2014, Alison Ltd recorded a profit of $100,000 and paid a $10,000 dividend which Imogen Ltd has recognized as dividend revenue. The following transactions have occurred between the two entities (all transactions are independent unless specified): In July 2014, Alison Ltd sold inventory to Imogen Ltd for $15,000. This inventory had previously cost Alison Ltd $10,000 and remains unsold by Imogen Ltd at 31 December 2014. In August 2014, Imogen Ltd sold inventory to Alison Ltd at a selling price of $8,000. The original cost of this inventory is $3,000. Half of this was sold by Alison Ltd before 31 December 2014. (c) In December 2013, Alison Ltd sold inventory to Imogen Ltd for $18,000. This inventory had cost Alison Ltd $12,000. At 31 December 2013, this inventory remained unsold by Imogen Ltd. However, it was all sold by Imogen Ltd before 31 December 2014. (d) On 1 January 2014, Alison Ltd sold a non-current asset costing $10,000 to Imogen Ltd for $12,000. Imogen Ltd applies a 10% p.a. on cost straight-line method of depreciation. (On 1 January 2014, Imogen Ltd sold an item of plant to Alison Ltd for $15,000. The carrying amount of the asset to Imogen Ltd at time of sale was $12 000. Alison Ltd applies a 12.5% p.a. straight-line method of depreciation. Required Prepare the journal entries in the records of Imogen Ltd for the year ended 31 December 2014 in relation to its investments in Alison Ltd.