Question 3 On January 1, 2020, XYZ Company acquired 500,000 shares at $ 25 per share of Loyal Inc. which represent 20% ownership. Required Record the following transactions in the books of XYZ Company (assuming there is significant influence and insignificant influence) (a) The acquisition of shares done by XYZ Company on January 1, 2020 (b) The Loyal Inc had reported net income of $ 4,400,000 for the year 2020 (5 marks) (c) Loyal Inc. announced and paid cash dividends of $ 2,000,000, (5 marks) (d) On December 31, 2020, Loyal Inc. shares been valued at $ 27 per share, and XYZ Company still owns 500,000 shares (5 marks) (e) On December 31, 2021, Loyal Inc. shares would be valued at $ 26 per share, and XYZ Company will still own 500,000 shares and show the balance appearing in unrealized holding gains ledger account