Question Four ABC acquired 1 million R1 equity shares in XY on 14 June 2021 for R1.85 per share and classified this investment as available for sale. ABC paid a 1% transaction fee to its broker on this transaction. XY's shares were trading at R1.98 on 31 December 2021. On 2 October 2021 ABC acquired 200,000 R0.50 equity shares in LM for R0.70 per share and classified this investment as held for trading. ABC paid a 0.5% transaction fee to its broker on this transaction. LM's shares were trading at R1.15 on 31 December 2021. ABC prepares its financial statements in accordance with the provisions of IAS 32 Financial instruments: presentation and IAS 39 Financial instruments: Recognition and Measurement. Required: (a) Prepare the journal entries to record the initial measurement AND the subsequent measurement of the investments in XY and LM in the financial statements of ABC for the year to 31 December 2021. (6 marks IFRS 13 Fair Value Measurement sets out a framework for the measurement of fair value. It has established a hierarchy that categorises the inputs used in valuation techniques. Required: (b) Explain, in accordance with IFRS 13 Fair Value Measurement, the level of input that is being used to value ABC's investment in XY and the different techniques and levels of input that could be used if XY was an unlisted entity. (4 marks) Total for Question Four = 10 marks