question 4

Question 4 (7 points) On April 15, 2020, Twilight Corporation, a company that follows IFRS, purchases 20,000 common shares of Daylight Company at a total cost of $250,000. The investment is accounted for under the fair value through other comprehensive income (FV-OCI) without recycling model. On December 31, 2020, the market price for each common share of Daylight Company is $15. Twilight sells the Daylight Company shares on July 17, 2021 for $17 per share. Twilight Corporation has a December 31 year end. Required: Prepare the journal entries for Twilight's investment in Daylight Company for 2020 and 2021