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Ayayai Inc. purchased 30% of Nadal Corporations 32,000 outstanding common shares at a cost of $15 per share on January 3, 2020. The purchase price of $15 per share was based solely on the book value of Nadals net assets. On September 21, Nadal declared and paid a cash dividend of $41,300. On December 31, Ayayais year end, Nadal reported net income of $90,000 for the year. Nadal shares had a fair value of $14.75 per share at December 31. Ayayai Inc., a private Canadian corporation, applies ASPE.

Ayayai Inc. purchased 30% of Nadal Corporation's 32.000 outstanding common shares at a cost of $15 per share on January 3, 2020. The purchase price of $15 per share was based solely on the book value of Nadal's net assets. On September 21, Nadal declared and paid a cash dividend of $41,300. On December 31, Ayayai's year end, Nadal reported net income of $90,000 for the year. Nadal shares had a fair value of $14.75 per share at December 31. Ayayai Inc., a private Canadian corporation, applies ASPE. Under the assumption that the 30% holding of Nadal does not give Ayayai significant influence over Nadal, identify the possible accounting methods Ayayai could use under ASPE to account for its investment. Prepare all required 2020 journal entries under each acceptable method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round answers to O decimal places, e.g. 5,275.) Date Debit Credit Account Titles and Explanation FV-NI method: (To record investment purchase) (To record collection of dividend) (To record fair value adjustment) Cost method: If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Debit Credit Account Titles and Explanation FV-NI method: (To record investment purchase) (To record collection of dividend) (To record fair value adjustment) Cost method: (To record investment purchase) (To record collection of dividend) FE Under the assumption that the 30% holding of Nadal gives Ayayai significant influence over Nadal, prepare all required 2020 journal entries, assuming Ayayai uses the equity method of accounting. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit (To record investment purchase) (To record collection of dividend) (To record investment income)

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