Question 1: (31 marks) Review text example page 58 and self study problem 2 prior to completing this question RR Company purchased 12,000 common shares of SS Inc. on January 1, Year 1 for $198,000. SS inc. had 80,000 common shares outstanding. The following information relates to SS Inc.: On January 1, Year 3, RR sold Investment in SS Inc. shares for $20 per share. Required: Show all calculations for full marks i) Prepare the journal entries for years 1, 2 and on January 1, Year 3 assuming the following independent scenarios: a) Investor plans to sell the shares in the short term for profit b) Elect to use FVTOCI (include all closing journal entries, as well as closing entry on January 1 Year 3) c) Investor has significant influence ii) What is the total change in Retained Earnings (in dollars) from January 1, Year 1 to January 1 , Year 3 for each scenario? Show all numbers(changes) for each year to support your total change. The July 31 , Year 3 , balance sheets of two companies that are parties to a business combination are as follows: Required: a) Assume that Red made a $960,000 cash payment to the shareholders of Sax for 100% of their shares. (i) Prepare the journal entry(ries) in the records of Red to record the share acquisition. (ii) Prepare the consolidated balance sheet of Red Corp. as at August 1, Year 3 in "good form". Hints: Goodwill =$84,000 Consolidated balance sheet total assets =$3,298,000