Question 5 (20 marks) Dollarmart Inc. purchased 20,000 of the 60,000 outstanding shares of Valuemart for $7.70 per share on January 1, Year 7. The Dollarmart controller believes that his company has significant interest over Valuemart. During Year 7, Valuemart earned a net income of $90,000 and paid dividends of $36,000. On December 31, Year 7, Valuemart shares were trading for $8.23. During Year 8, Valuemart earned a net income of $99,000 and paid dividends of $42,000. On December 31, Year 8, Valuemart shares were trading for $8.88. Required: A. Assuming that Dollarmart has significant influence over Valuemart, prepare all the necessary journal entries for Year 7. Only do the Year 7 entries. B. Prepare a schedule that shows all changes to the Investment in Valuemart account, and include the Year 8 ending balance of the investment account. Question 6 (20 marks) Docker Company purchased equipment on September 18, Year 6, for $500,000. The estimated useful life is 8 years and residual value is $60,000. On March 24, Year 12, they sold the equipment for $140,000. Instructions: Provide all journal entries necessary for the sale of the equipment under the following conditions. You must also show your clearly labelled calculations. An answer with no supporting calculations will receive a mark of zero for this question. A. Docker uses straight line depreciation. B. Docker uses double declining balance depreciation