YTN Company purchased $17,500$ common shares of XPL Inc. on January $1,$ Year $1$ for

$$275,000.$ XPL Inc. had $72,500$ common shares outstanding. The following

informationrelates to XPL Inc.:

Net Income $($loss$)$ Dividends paid Market value$/$share at Dec. $31$

Year $1$ $$235,000$ $$72,500$ $$14$

Year $2$ $$-80,000$ $$28,000$ $$12$

On January $1,$ Year $3,$ YTN sold Investment in XPL Inc. shares for $$15$ per share. YTN

has a December $31$ year end.

Required $($show all calculations for full marks$)$

i$)$ Prepare the journal entries for Years $1$ and $2$ and on January $1,$ Year $3$ assuming

the following independent scenarios:

a$)$ Investor plans to sell the shares in the short term for profit

b$)$ Investor elects to use FVTOCI $($include closing JE on January $1,$ Year $3)$

c$)$ Investor has significant influence

ii$)$ How much is the change in Retained Earnings from January $1,$ Year $1$ to January

$1,$ Year $3$ for each scenario? Show all #s for each year to support your total change