Question 1 (8 marks) On July 1, 2020, Grover Inc. and Cooke Ltd. (together, the Investors) created a joint venture called Big & Little Inc. (BLI). All operating, financing, and strategic decisions of BLI must be made with the unanimous consent of both Investors. BLI's year end is December 31. Grover Inc. contributed cash of $350,000 for a 35% interest in BLI, while Cooke Ltd. contributed a building with a fair value of $650,000 for a 65% interest in BLI. Cooke's building had a net book value of $500,000 ($1,000,000 cost less $500,000 accumulated depreciation) and had a remaining useful life of 15 years. The transfer of the building was deemed to have commercial substance. During the six months ended December 31, 2020, BLI reported net income of $130,000. BLI also reported the following transactions between itself and the Investors for the six-month period: BLI sold $20,000 of merchandise to Grover Inc. at a gross profit of 30%, and 50% of these goods remained in Grover's inventory at December 31, 2020. BLI sold $40,000 of merchandise to Cooke Inc. at a gross profit of 25%, and 30% of these goods remained in Cooke's inventory at December 31, 2020. Cooke Inc. sold $50,000 of merchandise to BLI at a gross profit of 40%, and 25% of these goods remained in BLI's inventory at December 31, 2020. Grover Inc., Cooke Ltd., and BLI are all subject to tax at a rate of 20%, and report under IFRS. Required: Prepare the journal entries that Cooke Ltd. should record related to all of the above transactions during the period from July 1 to December 31, 2020. (8 marks)