Question 2 (18 marks)

Refer the information provided in Question #1 above. Assume the same fact pattern but that LL elects to use OCI (IFRS 9).

REQUIRED

Prepare the applicable journal entries for the current year, including the adjusting entries at year-end. Do not prepare any closing entries.

Complete the following table:

Investment in Northern (as of December 31)
Investment in Orion (as of December 31)
Net income (for the year ended December 31)
Other Comprehensive Income (for the year ended December 31)
Comprehensive income (for the year ended December 31)

Prepare the applicable closing entries as of December 31.

If LL was a private company using ASPE, could LL use election of OCI methodology to account for its investments? Explain.