Help in a and b. Please use word document

Consider the following data for intercorporate investments (extracted from Chen Company): Year Shares Purchased (Sold) Price/Share Jan 1 Price/Share Dec 31 20x1 200 $80 $70 20x2 (80) 63 82 20x3 100 75 95 All sales and purchases are assumed to occur on January 1. Price may vary from price on previous day (December 31). 20x1 20x2 20x3 Investee earnings per share $8 $9 $8 Investee dividend per share 3 2 3 Consider the Trading and Equity method for classifying investment Required: a. Show the B/S carrying amount for each of the 3 years if the investment is classified as Trading and EQUITY (Show calculations) (7 marks) Balance Sheet Carrying Value 20x1 20x2 20x3 TRADING EQUITY METHOD b. Show the total income recognized for each of the 3 years if the investment is classified as EQUITY, and TRADING (Show calculations) (10 marks) 20x1 20x2 20x3 TRADING EQUITY Consider the following data for intercorporate investments (extracted from Chen Company): Year Shares Purchased (Sold) Price/Share Jan 1 Price/Share Dec 31 20x1 200 $80 $70 20x2 (80) 63 82 20x3 100 75 95 All sales and purchases are assumed to occur on January 1. Price may vary from price on previous day (December 31). 20x1 20x2 20x3 Investee earnings per share $8 $9 $8 Investee dividend per share 3 2 3 Consider the Trading and Equity method for classifying investment Required: a. Show the B/S carrying amount for each of the 3 years if the investment is classified as Trading and EQUITY (Show calculations) (7 marks) Balance Sheet Carrying Value 20x1 20x2 20x3 TRADING EQUITY METHOD b. Show the total income recognized for each of the 3 years if the investment is classified as EQUITY, and TRADING (Show calculations) (10 marks) 20x1 20x2 20x3 TRADING EQUITY