The information that follows relates to equipment owned by Sweet Acacia Limited at December $31,2023$:Crane Corp. acquired $6,400$ shares of Mandrake Corp. on July $1,2024$ at $$9$ per share. There is no quoted market price for Mandrake's

shares as it is a private company. Crane reports under ASPE and has elected to account for the investment using the cost method. On

September $1,$ Mandrake declared and paid a $$0\mathrm{.}40$ per share dividend and on December $31,$ Crane sells the shares at $$8$ per share.

Prepare the journal entries to record the above transactions. $($Credit account titles are automatically indented when amount is

entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select

$"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

INV

Investment Income or Loss

Investment in Associate

eTextbook and Med

Bond Investment at Amortized Cost

Note Investment at Amortized Cost

List of Accounts

Save for Later

Last sav

FV$-$NI Investments

Other Investments

FV$-$OCl Investments

Saved work will be auto$-$:

submission can take up ts

Allowance for Investment Impairment

Gain on Sale of Investments

Gain on Disposal of Investments $-$ FV$-$NI

Loss on Disposal of Investments $-$ Cost$/$Amortized Cost

Attempts: $2$ of $3$ used

Cost

Accumulated depreciation to date

Expected future net cash flows $($undiscounted$)$

Expected future net cash flows $($discounted$,$ value in use$)$

$$3,600,000$

$400,000$

$2,800,000$

$2,540,000$

$2,480,000$

$20,000$

Assume that Sweet Acacia will continue to use this asset in the future. As at December $31,2023,$ the equipment has a remaining useful

life of four years. Sweet Acacia uses the straight$-$line method of depreciation. Assume that Sweet Acacia is a private company that

follows ASPE.

$($c$)$

The equipment's fair value at December $31,2024,$ is $$2\mathrm{.}60$ million. Prepare the journal entry, if any, to record the increase in fair

value. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry

is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

December

$31,2024$

Accumulated Impairment Losses $-$ Equipment

Debit

Credit