Question 2 (Total 20 marks) Part A (10 marks) Far East Limited invested in three different SPPI debt securi- ties in its portfolios in December 2020. The purposes of hold- ing 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 fol- lows: cash dividends of $45,000. It is presumed that Far East Lim- ited 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. (3) marks) Cost Fair Value Year 2020 $394,500 $389,900 Year 2021 406,400 412,600 Year 2022 454,800 472,000 Required: Beginning with Year 2020, prepare the appropriate journal en- try to record each year-end market adjustment for these fi- nancial 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