Question 2 (Total 20 marks) Part A (10 marks) Far East Limited invested in three different SPPI debt securities in its portfolios in December 2020. The purposes of holding securities are held for collecting contractual cash flows and for sale from time to time. The year-end cost and fair values for its portfolio were as follows: Year 2020 Year 2021 Year 2022 Cost $394,500 406,400 454,800 Fair Value $389,900 412,600 472,000 Required: Beginning with Year 2020, prepare the appropriate journal entry to record each year-end market adjustment for these financial instruments from Year 2020 to Year 2022 Part B (10 marks) Far East Limited purchased 40% interest in ordinary shares of Blackburn company for $350,000 on 1 January 2020. For the year ended December 31, 2020, Blackburn reported net profit after tax of $105,000. During the year, Blackburn paid cash dividends of $45,000. It is presumed that Far East Limited have significant influence over Blackburn company. On January 1, 2021, Far East Limited disposed all the shares of Blackburn for cash $400,000 Required: i. For the financial statements of Far East Limited for December 31, 2020, show and illustrate the total investment in Blackburn under equity accounting. (7 marks) ii. Prepare accounting entries for the disposal of Blackburn on January 1, 2021 and make the necessary equity accounting adjustments for the consolidated financial statements