QUESTION 1 (20 marks):

At December 31, 2020, Perth Inc. has the following investments. Assume the FVTPL investments are held for trading.

Security	Investment Category	Carrying Value	Fair Value
Co. A common shares	FVTPL	$19,000	$16,000
Co. B preferred shares	FVTPL	11,500	14,000
Co. C common shares	FVTOCI	21,000	19,000
Total		$51,500	$49,000

(a) Prepare the adjusting entries required at December 31 to reflect the above information.

(b) Show the financial statement presentation (balance sheet AND statements of income and comprehensive income) of the investments and related transactions and adjustments at December 31, 2020. (Ignore income tax.)

BE SPECIFIC AS TO CLASSIFICATION AND ACCOUNT TITLE.

(c) Assuming that on March 20, 2021, Perth sold Co. B preferred shares for $13,000, and sold Co. A common shares for $17,500. Prepare the journal entries to record these transactions.