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On June 30, 20x2, the Marsalis Company purchased $130,000 of the shares of Powell Inc. During...

On June 30, 20x2, the Marsalis Company purchased $130,000 of the shares of Powell Inc. During the year, Marsalis received $3,000 of dividends of Powell Inc. At December 31, 20x2, the shares of Powell had a fair value of $110,000. Required – a) Assume that Marsalis classifies the investment as Fair Value through Profit and Loss (FVTPL). Write the journal entries for the year ended December 31, 20x2, b) Assume that Marsalis classifies the investment as Fair Value through Other Comprehensive Income (FVTOCI). i) Write the journal entries for the year ended December 31, 20x2. ii) Assume that Marsalis’ net income for the year ended December 31, 20x2 is $460,000. Prepare the bottom portion of the Statement of Comprehensive Income starting with the line ‘Net Income’.

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