X Ltd. (X) purchased 40% of Y Ltd. (Y) on January 1, 2022, for $400,000. Y...

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X Ltd. (X) purchased 40% of Y Ltd. (Y) on January 1, 2022, for $400,000. Y paid dividends of $50,000 in each year. Y's income statements for 2022 and 2023 showed the following. Time left 1:29:35 2022 2023 Income (loss) before income taxes $100,000 ($60,000) Income taxes expense (recovery) 40,000 (15,000). Net income (loss) $60,000 ($45,000) Other comprehensive income (next of 20,000 25,000 tax) Comprehensive income (loss) $80,000 ($20,000) At December 31, 2022, the fair value of the investment was $440,000 and at December 31, 2023, the fair value of the investment was $420,000. Required (25 marks): a) Prepare X's journal entries for 2022 and 2023, assuming that this is a non- strategic investment and is accounted for at fair value through profit and loss (FVTPL). --- X Ltd. (X) purchased 40% of Y Ltd. (Y) on January 1, 2022, for $400,000. Y paid dividends of $50,000 in each year. Y's income statements for 2022 and 2023 showed the following. Time left 1:29:35 2022 2023 Income (loss) before income taxes $100,000 ($60,000) Income taxes expense (recovery) 40,000 (15,000). Net income (loss) $60,000 ($45,000) Other comprehensive income (next of 20,000 25,000 tax) Comprehensive income (loss) $80,000 ($20,000) At December 31, 2022, the fair value of the investment was $440,000 and at December 31, 2023, the fair value of the investment was $420,000. Required (25 marks): a) Prepare X's journal entries for 2022 and 2023, assuming that this is a non- strategic investment and is accounted for at fair value through profit and loss (FVTPL). ---

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To prepare X Ltds journal entries for 2022 and 2023 for the investment in Y Ltd assuming it is accou... View the full answer