On August 1, 2014, Lourdes Inc. (Lourdes) purchased 20,000 preferred shares of Matagami Ltd. for \($120\) per share.

The shares have a dividend of \($12\) per share and must be repurchased by Matagami on or before November 30, 2020 for \($120\) per share. On December 31, 2014, Lourdes’

year-end, the market value of the shares was \($95\) per share. On December 31, 2014, Lourdes had total assets (excluding the investment in the preferred shares) of \($35\) million, total liabilities of \($25\) million and share capital of \($4\) million. In addition, Lourdes’ revenues and expenses for 2014 (excluding all income statement effects related to the preferred shares) were \($8,200,000\) and \($6,100,000\) respectively. Retained earnings on January 1, 2014 was $6,060,000.

Required:

a. Prepare a summarized balance sheet and income statement on December 31, 2014, assuming that Lourdes accounts for the shares as a (i) trading investment, (11) held-to-maturity investment, and (iii) available-for-sale investment, assuming that Lourdes owned the shares on December 31, 2014.

b. Prepare a summarized balance sheet and income statement on December 31, 2014, assuming that Lourdes accounts for the shares as a (i) trading investment, (ii) held-to-maturity investment, and (iii) available-for-sale investment, assuming that Lourdes sold the shares on December 31, 2014, for \($95\) per share.