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On September $10,2023,$ Marigold Corporation, a publicly traded company, purchased $16,400$ common shares in Dunlop Ltd at a cost of $$8$ per share. The number of shares purchased was not a significant percentage of Dunlop's ownership, and Marigold designated the investment as fair value through other comprehensive income $($FV$.$OCI$)$ under IFRS. Concerned about the inherent risk of losing value through the change in market price of the shares, Marigold immediately purchased an option to sell the Dunlop shares for $$131,200.$ The option cost $$10,300.$ On September $30,2023,$ Marigold prepared its quarterly financial statements. On that day, the Dunlop shares were trading at $$9\mathrm{.}00$ per share. The options, on the other hand, were trading at $$6,320.$

$($a$)$

$$ Your answer is correct.

Is this a fair$-$value hedge or a cash flow hedge, from Marigold's perspective?

This a $$ from Marigold's perspective.

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List of Accounts

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$10\%$ score reduction after attempt?

$($b$)$

Prepare the neressary journal entries to record the above events $($Credit account cities are qutomatically indented when the amount is entered Do not indent manually If no entry is required, select $\text{'}$No Entry for the account titles and enter O for the amounts Record

Prepare the necessary journal entries to record the above events. $($Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entrles.$)$

Date

September $10,2023$

September $10,2023$

Account Titles and Explanation

$$

$($To record purchase of shares.$)$

$$

$($To record purchase of hedge option.$)$

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$$

September $30\mathrm{.}2023$

Debit

Credit