The average of market analysts' forecasts was that the share price could be expected to rise to $4 per share over the next 3-5 years. Edmund's management used this as the recoverable amount when assessing their investment in Tenzing for impairment. Required: (a) Calculate the January 1, 2021 carrying value of Edmund's investment in Tenzing. (b) Using the accounting policy selected by Edmund's management, Provide journal entries for all transactions relating to its investment in Tenzing Limited during 2021. (c) Calculate the December 31, 2021 carrying value of Edmund's investment in Tenzing. (c) You are the Controller at Edmund. A board member questioned why Edmund did not change its accounting for its investment in Tenzing after the sale of 300,000 of its shares in the company. He argued that without at least a 20% stake in Tenzing, Edmund did not have significant influence over Tenzing. Therefore, GAAP requires fair value be used to account for the investment. Do you agree? Provide support for you position. (d) Assume now that Edmund lost significant interest in Tenzing when it sold 300,000 of its shares on July 2nd. Prepare revised entries for any of the 2021 transactions you recorded in (b) above that would change.Edmund plc, a company whose shares are listed on the Canadian Securities Exchange (CSE), purchased 2,000,000 of the 10,000,000 outstanding common shares of Tenzing Limited on January 1, 2020, at an average cost of $5.00 per share. Shortly after Edmund made this investment, Edmund's CEO, Penelope Percival, was added to Tenzing's board of directors. She held this position throughout 2020 and 2021. Edmund and Tenzing are jointly developing a new product using patented technology owned by Tenzing. Edmund plc has chosen the equity method to account for its investment in Tenzing. In 2020, Tenzing Limited had net income of $5 million and paid dividends of $1 million. At the end of 2020, shares of Tenzing Limited were trading for $5.50 each. During 2021, Tenzing Limited had a loss of $3 million. From January 1 to June 30, net income was $2,500,000. Tenzing paid dividends of $500,000 on June 30. The company recorded a $5.5 million loss in the second half of the year. On July 2, 2020, Edmund plc sold 300,000 shares of Tenzing Limited for $7.50 per share. Edmund will contribute funds from the transaction as part of its share of product development costs with Tenzing. After selling these shares, Edmund did not change its accounting policy for its investment in Tenzing. By the end of 2021, the share price of Tenzing Limited had fallen to $3 per share. The average of market analysts' forecasts was that the share price could be expected