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Exercise 9-27 On January 3, 2020, Concord Limited purchased 3,100 (31%) of the common shares of Sonja Corp. for $450,900. The following information is provided about the identifiable assets and liabilities of Sonja at the date of acquisition: Assets not subject to depreciation Assets subject to depreciation (10 years remaining) Total identifiable assets Liabilities Carrying Amount Fair Value $505,000 $505,000 769,000 889,000 1,274,000 1,394,000 84,000 84,000 During 2020, Sonja reported the following information on its statement of comprehensive income: Income before discontinued operations Discontinued operations (net of tax) Net income and comprehensive income Dividends declared and paid by Sonja November 15, 2020 $198,000 (50,500) 147,500 120,000 Assume that the 31% interest is enough to make Sonja an associate of Concord, and that Concord is required to apply IFRS for its financial reporting. The fair value of Sonja's shares at December 31, 2020, is $147 per share. Prepare the journal entry to record Concord's purchase of the Sonja shares on January 3, 2020. (Hint: Any unexplained payment represents unrecognized goodwill of Sonja.) (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.) Date Account Titles and Explanation Debit Credit Jan. 3, 2020 Prepare all necessary journal entries associated with Concord's investment Sonja for 2020. Depreciable assets are depreciated on a straight-line basis. (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 o for the amounts.) Account Titles and Explanation Debit Credit (To record dividends collected) (To record investment income or loss) (To record amortization of fair value difference) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the journal entry if you were informed that Concord's long-term business prospects had deteriorated and that the most Concord could expect to recover in the future or to sell its investment in Sonja for at December 31, 2020, is $115 per share. (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 o for the amounts.) Debit Credit Date Account Titles and Explanation Dec 31, 2020