c.

i)

Date Details Dr ($) Cr ($)

2017:
Jan 1 Stock Investments $450,000.00
Cash $450,000.00
To record investment of 45% of Passion Ltd's
common stock and net assets

Dec 31 Stock Investments $56,700.00

Investment revenue $56,700.00

Dec 31 Cash $22,500.00

Stock Investments $22,500.00
To record receipt of cash dividends from
investment in Passion Ltd

c. ii)
Current value of Passion Ltd Investment $450,000.00
add: % share in Passion Ltd's Net Income (45% x
$126,000) $56,700.00
less: % share in dividends distributed (45% x
$50,000) -$22,500.00
Closing balance of Passion Ltd Investment $484,200.00