Walker Inc. began operations on January 1, 20X5. The company reports its financial statements in accordance with IFRS. On December 31, 20X5, the company owned the following investments: Type Category Cost Fair value at year end Other 5% bonds Amortized cost $250,000 $249,000 Purchased at par on January 1, 20X5. Shares FVPL 85,000 93,000 $15,000 dividends declared in 20X5; $11,000 was received in the 20X5 fiscal year and the remaining $4,000 was received in the 20X6 fiscal year. Shares FVOCI 45,000 32,000 What is the total income from investments that Walker Inc. reported in the calculation of net income before taxes in the statement of comprehensive income for the year ended December 31, 20X5?

a) $21,500

b) $22,500

c) $31,500

d) $35,500

2. On February 1, 20X4, Hathaway Inc. purchased 3% of the common shares of Franco Corporation for $87,000. On December 31, 20X4, the fair market value of Francos shares owned by Hathaway had increased to $100,000. Hathaway follows IFRS and accounts for its investment in these shares under the FVPL method. What journal entry should Hathaway make at December 31, 20X4, for this investment?

a) No entry; do not record any gains or losses until the investment is sold.

b) Debit investment in financial assets at FVPL for $13,000.

c) Debit fair value adjustment for $13,000.

d) Credit OCI fair value adjustment for $13,000.

3. Carlton Corporations investment strategy focuses on debt instruments such as bonds, mortgages and loans. It also has equity investments, but its strategy for these investments is to hold them for long-term purposes. All investments held by the company have been classified as FVOCI. As at December 31, 20X4, the net carrying amount of the investments was $100,000 and the fair value of the investments was $108,600. What journal entry is required to be recorded by Carlton Corporation at December 31, 20X4, to account for these investments?

a) Debit OCI holding gain on investment in financial assets at FVOCI for $8,600

b) Debit investment in financial asset at amortized cost for $8,600

c) Credit investment in financial asset at FVOCI for $8,600

d) Credit OCI holding gain on investment in financial assets at FVOCI for $8,600