Problem 4 On January 1, 2017, SME X and SME Y each acquired 25% interest in entities A,B, and C for P100,000, P150,000 and P280,000, respectively. SME X and SME Y have joint control over the strategic financial and operating decisions of Entities A, B, and C. The transaction costs of 1% of the purchase price of the shares were incurred by SME X and SME Y. On January 2, 2017, Entity A declared and paid dividends of P10,000 for the year ended 2016. On December 31, 2017, entity B declared a dividend of P80,000 for the year ended 2017. The dividend declared by entity B was paid in 2018. For the year ended December 31, 2017, entities A and B recognized profit of P50,000 and P180,000, respectively. However, entity Creported aloss of P200,000 for the year. Published price quotation does not exist for the shares of entities A, B, and C. Using appropriate valuation techniques, the venturers determined the fair value of each of their investments in entities A, B, and Cat December 31, 2017 as P130,000, P290,000 and P150,000, respectively. Costs to sell are estimated at 5% of the fair value of the investments. Neither SME X nor SME Y prepare consolidated financial statements because they do not have any subsidiaries. Required: Assuming SME X measures its investments in jointly controlled entities using the cost model and SME Y measures its investments in jointly controlled entities using the fair value model, prepare the accounting entries to record the investments in the jointly controlled entities in the accounting records of SME X and SME Y for the year ended December 31, 2017