E$17\mathrm{.}19($LO $2,3)($Fair Value and Equity Method Compared$)$ Chen Group acquired $20\%$ of the outstanding ordinary shares of Cho Ltd$.$ on December $31,2022.$ The purchase price was $$125,000,000$ for $50,000$ shares. Cho declared and paid an $80$ per share cash dividend on June $30$ and on December $31,2023.$ Cho reported net income of $73,000,000$ for $2023.$ The fair valuc of Cho's shares was $82,700$ per share at December $31,2023.$

Instructions

a$.$ Prepare the journal entries for Chen for $2022$ and $2023,$ assuming that Chen cannot exercise significant influence over Cho. The investments should be classified as trading.

b$.$ Prepare the journal entries for Chen for $2022$ and $2023,$ assuming that Chen can exercise significant influence over Cho. Equlity method

c$.$ At what amount is the investment reported on the statement of financial position under each of these methods at December $31,2023?$ What is the effect on net income reported in $2023$ under each of these methods?