XYZ Corp. operates under ideal conditions of certainty. It acquired its sole asset on January 1, 20x1. The asset will yield $600 cash at the end of each year from 20x1 to 20x3, inclusive, after which it will have no market value and no disposal costs. The interest rate in the economy is 5 percent. Purchase of the asset was financed by the issuance of common shares. XYZ Corp. will pay a dividend of $20 at the end of 20x1 and 20x2. Required Prepare a balance sheet for XYZ Corp. at the end of 20x1 and an income statement for the year ended December 31, 20x1. Prepare a balance sheet for XYZ Corp. as at the end of 20x2 and an income statement for the year ended December 31, of 20x2. Under ideal conditions, what is the relationship between present value (i.e., value in use) and market value (i.e., fair value)? Why? Under the real conditions in which accountants operate, to what extent do market values provide a way to implement fair value accounting? Explain