Please help me with this question with a detailed answer. Thank you very much for your help. Assume the background of this question is under IFRS and Canadian ASPE if needed.

Question:

Prospect Inc. is a public company.On January 1, 2019 Prospect Inc. purchased 10,000 common shares (10%) of Silverbrook Inc. for $75,000 in cash.Silverbrook had common shares of $225,000 and retained earnings of $475,000 on this date. Prospect considered Silverbrook a FVTPL investment; as it did not give Prospect significant influence.On December 31, 2019 the Silverbrook shares were trading at $9.50 per share.

On January 1, 2020, Prospect purchased an additional 30% of Silverbrook's shares for $285,000 in cash.This second purchase allowed Prospect to exert significant influence over Silverbrook.The following information was available on the date of acquisition:

Carrying ValueFair Value

Assets not subject to depreciation$205,000 $205,000

Assets subject to depreciation (10 year useful life)620,000775,000

Patent (7 year useful life)- 35,000

Liabilities115,000115,000

Silverbrook depreciates assets using the straight-line method and has a 35% tax rate.

During the two years, Silverbrook reported the following:

Net IncomeDividends Declared

2019$275,000$75,000

2020$175,000$115,000

Additional Information

Silverbrook pays any dividends declared in cash on January 1 of the subsequent year.

On December 31, 2020, an impairment test revealed that Prospect's share of Silverbrook's goodwill was impaired by $7,500.

The 2020 net income included a loss from discontinued operations of $40,000 (net of tax).

REQUIRED:

Prepare all of Prospect's journal entries for 2019 and 2020 related to Prospect's investment in Silverbrook.