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No1 Coffee (Pty) Limited purchased 5% investment in equity of Tasteplus Limited for $100,000 on...

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Accounting

No1 Coffee (Pty) Limited purchased 5% investment in equity of Tasteplus Limited for $100,000 on 1 January 2021. Transaction costs amounted to $1000 on 1 January 2021. The fair value of the 5% investment at 31 December 2021 was $120,000.

You are required to give journal entries that the No1 Coffee (Pty) Ltd is required to process in respect of the purchased instrument for the year ended 31 December 2021 assuming the its measured at fair value through (a) profit / loss and (b) other comprehensive income.

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