Jaguar Company purchased 25,000 common shares (20 percent) of Panther Company on January 1, 20X1, for $500,000. On that day, the difference between the carrying value and fair value of Panther€™s assets of $300,000 was fully attributable to patents, which had a usual life of six years. Additional information on Panther Company for the three years ending December 31, 20X3, is as follows:

On December 31, 20X3, Jaguar Company sold its investment in Panther Company for $575,000.

Required
1. Compute the balance in the investment account at the end of 20X1 assuming that the investment is classified as:

i. an FVTPL investment;

ii. an investment in an associate; and

iii. a FVTOCI investment.

2. Calculate how much total income will be reported in net income and OCI by Jaguar in relation to its investment in Panther in 20X1, 20X2, and 20X3, respectively, assuming the investment is classified as:

i. a FVTPL investment;

ii. an investment in an associate; and

iii. a FVTOCI investment.

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Dividends paid $200,000 80,000 150,000 Market value per share at Dec. 31 Year Net income 20X1 $22 $400,000 (100,000) 21 20X2 20X3 23 250,000