Question 2 (Total 20 marks) XYZ Corporation used cash surplus to invest in different types of investment, Below are the transactions and events related to the investment in 2018 and 2019. Transactions/Events Item Date 2018 Mar 01 Purchased 5,000 ordinary shares of NewTech. at $30.20 per share plus $1,250 broker's fee. XYZ Corporation intended to hold the shares as long-term Available-for-sale investment (AFS). Purchased 1,500 ordinary shares of ECar Ltd at $40.00 per share plus $600 broker's fee. Intended to hold as long term AFS. Purchased 10,000 ordinary shares of Good-Buy Store at $15.00 per share plus $1,500 broker's fee. XYZ Intended to hold the investment for short term trading (Trading). Purchased 40,000 shares of Global Link Corp. ordinary shares at $6.00 per share plus $2,400 broker's fee. The shares owned by XYZ Corporation represent 40% of Global Link Company's total shares issued Sold 1,000 ordinary shares of NewTech, at $32.00 per share less a $460 broker's fee. Global Link Corp. reported net earnings of $100,000 for the year 1 Mar 31 2 Apr 10 3 4 Jun 20 5 Oct 21 6 Dec 31 2019 Feb 18 Global Link Corp. declared and paid cash dividends of 50% of its 2018 reported earnings Additional Information XYZ Corporation has Financial Year End at 31 Dec. The securities were traded on the market on Dec 31, 2018 at the following prices. NewTech $34.65, ECar Ltd $38.00, and Good-Buy Store $13.5. co Required: Part A i. Prepare journal entries to record the above transactions and events (1) to (6) occurred in 2018. (12 marks) Prepare journal entries to account for fair value adjustment for Available- for-Sale (AFS) investments held at year end. [Show your working or calculation where appropriate] ii. (2 marks) Prepare journal entries to record the fair value adjustment for Held-for- Trading investment at year end. [Show your working or calculation where appropriate] iii. (1 mark) Prepare journal entries to record the transactions/events happened in 2019 iv. (1 mark) Part B a) In accounting for unrealized gain or loss from fair value adjustment, what is the difference between Held-for-Trading and Available-for-Sale securities. (2 marks) b) Explain how investors account for equity investments in a company (i.e. investee) with shareholding within the range of 20% to 50%. (2 marks