Prepare all the required journal entries

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Ophir Ltd. is public company that trades on the TSX. On 3 March 2020, the company purchased 6,000 common shares of RO Inc. for total proceeds of $130,500, representing 30% of the total outstanding shares of RO Inc. Ophir Ltd. determined that at the time of purchase, it was able to exercise significant influence over RO Inc. On 30 September 2020, Ophir Ltd. received a dividend of $1.25 per share from RO Inc. On 31 December 2020, the market value of the RO Inc. investment had dropped to $18 per share. RO Inc.'s net income for the year ended 31 December 2020 was $58,000.

Required:

Question a) Prepare all the required 2020 journal entries for transactions above.

Question b) If Ophir Ltd. were not able to exercise significant influence over its investment in RO Inc. what other accounting choice(s) does it have to report the investment?

Reference no: EM132498061

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