On 1 January 2020, Investor Ltd paid $1,100,000 for a 25% interest in Associate Ltd when the equity of Associate Ltd consisted of $3,000,000 share capital and $1,200,000 retained earnings. There has been no change in share capital of Associate Ltd since then. Both firms' accounting period is from 1 January to 31 December and their income tax rate is 30%. On this date, all the identifiable net assets of Associate Ltd were recorded at fair value except for the following: Fair value Carrying amount Status Inventory $ 400,000 $ 600,000 Sold in 2020 Machinery (net) 900,000 500,000 5-year life Equipment (net) 70,000 150,000 4-year life   Additional information: Associate Ltd has no dividend declared or paid during 2020. Associate Ltd's financial statements show that retained earnings were $1,500,000 as at 1 January 2021, and profit and dividend were $190,000 and $10,000, respectively, for 2021. On 15 November 2021, Associate Ltd sold inventory to Investor Ltd at a profit before income tax of $20,000. Investor Ltd sold 60% of this inventory by 31 December 2021. On 1 January 2020, Associate Ltd sold some furniture to Investor Ltd for $300,000, with Associate Ltd recording a profit before income tax of $50,000. The furniture had a further 5- year life. On 10 December 2021, Investor Ltd sold inventory to Associate Ltd for $100,000 with a profit before income tax of $20,000. Associate Ltd still has this inventory on hand by 31 December 2021. Required: 1)Determine the amount of "Profit from investment in Associate" for 2020 and provide a journalentry to record this amount on the books of Investor Ltd. 2) Determine the balance of "Investment in Associate" as at 31 December 2021.     Please give ans both of this

On 1 January 2020, Investor Ltd paid $1,100,000 for a 25% interest in Associate Ltd when the equity of Associate Ltd consisted of $3,000,000 share capital and $1,200,000 retained earnings. There has been no change in share capital of Associate Ltd since then. Both firms' accounting period is from 1 January to 31 December and their income tax rate is 30%. On this date, all the identifiable net assets of Associate Ltd were recorded at fair value except for the following:

Fair value Carrying amount Status

Inventory $ 400,000 $ 600,000 Sold in 2020

Machinery (net) 900,000 500,000 5-year life

Equipment (net) 70,000 150,000 4-year life

Additional information:

1. Associate Ltd has no dividend declared or paid during 2020.
2. Associate Ltd's financial statements show that retained earnings were $1,500,000 as at 1
3. January 2021, and profit and dividend were $190,000 and $10,000, respectively, for 2021.
4. On 15 November 2021, Associate Ltd sold inventory to Investor Ltd at a profit before income
5. tax of $20,000. Investor Ltd sold 60% of this inventory by 31 December 2021.
6. On 1 January 2020, Associate Ltd sold some furniture to Investor Ltd for $300,000, with Associate Ltd recording a profit before income tax of $50,000. The furniture had a further 5-
7. year life.
8. On 10 December 2021, Investor Ltd sold inventory to Associate Ltd for $100,000 with a profit
9. before income tax of $20,000. Associate Ltd still has this inventory on hand by 31 December 2021.

Required:

1)Determine the amount of "Profit from investment in Associate" for 2020 and provide a journalentry to record this amount on the books of Investor Ltd.

2) Determine the balance of "Investment in Associate" as at 31 December 2021.

Please give ans both of this