Problem 2 - Equity Investment (30)

Panthers Corp. purchased 8,000 shares of Canes Corp. for $100 per share on August

1, 2019. As per IFRS 9, Panthers chose to classify this new investment as FVOCI at the

time of the purchase. On November 1, 2019 Canes paid a dividend of $2 per share. At

balance sheet date the market price of Canes was $90 per share. On March 1, 2020

Panthers sold all 8,000 shares for $105 per share.

Required

Prepare the journal entries required under IFRS as well as those that would be required

under GAAP.