On 30 June 20X2, King Ltd. purchased 10,000 shares of Prince Inc. for $12,000 plus $1,000 in commission. In 20X2, the company received $500 of dividends, and the shares had a fair value of $16,000 at the end of the year. In 20X3, there were no dividends and the shares were sold for $22,000 less a $500 commission.

Required:

1. Prepare journal entries for 20X2 and 20X3:

a. Assuming King reports under ASPE and has chosen the cost method.

b. Assuming King reports under IFRS and classified the investment as fair-value-through-profit-or-loss.