On August 1, 2013, Parksville Ltd Bought 10,000 Shares of Surrey

On August 1, 2013, Parksville Ltd bought 10,000 shares of Surrey Company's 50,000 shares for $500,000.During the year Surrey reported net income of $100,000 and paid a dividend of $0.50 per share.On July 31, 2014, at Parksville's year-end the estimated fair value of Surrey's shares was $52.50.
Required:
A) Compare and contrast how Parksville's investment in Surrey Company would be reported on their financial statements assuming that:
i) They are able to exercise significant influence, and
ii) They are not able to exercise significant influence and have classified the investment as FVTOCI.
B) If management were paid a bonus based on net income, which method would they prefer? Explain briefly.C) If the primary objective of the financial statements were to provide them to the bank in support of a loan, which method would they prefer? Explain briefly.