Reference no: EM132601731

Pat Inc.(P) acquired 15% of the 100,000 outstanding common shares of Mark Inc.(M) on January 1, 2019 for a cash consideration of $150,000 and a further 10% of the company's common shares a year later for $110,000. On July 1, 2020, P sold half their holding in M for proceeds of $150,000. M'searned income of $150,000 in 2019 and $180,000 in 2020 (evenly over both years) and paid a regular semi-annual dividend of $60,000 in June and December each year. P does not have significant influence over M and its investment in M is classified at all times as a fair value through profit and loss investment (FVTPL). M's shares were trading for $11 at the end of 2019 and $12.50 at the end of 2020.

Required:

Question 1: Make dated journal entries for P for 2019 to account for its investment in Markand any related income therefrom.

Question 2: Calculate the P investment account in M as at Dec 31,2020.