Ludowicz acquired 20% of the common shares of Sitar on January 1, 2012 for $22,000. At this date, all the identifiable assets and liabilities of Ludowicz were recorded at fair value. An analysis of the acquisition showed that $2,000 of goodwill was acquired.

Ludowicz has no subsidiaries, and records its investment in the associate, Sitar, in accordance with IAS 28. During 2012, Sitar reported net income of $120,000. In 2013, Sitar recorded a profit of $100,000, paid an interim dividend of $10,000, and in December 2013, declared a further dividend of $15,000. In December 2012, Sitar had declared a $20,000 dividend, which was paid in February 2013, at which date it was recognized by Ludowicz. The following transactions have occurred between the two entities (all transactions are independent unless specified):

1. In June 2013, Sitar sold inventory to Ludowicz for $15,000. This inventory had previously cost Sitar $10,000, and remains unsold by Ludowicz at the end of the period.

2. In July 2013, Ludowicz sold inventory to Sitar at a before-tax profit of $5,000. Half of this was sold by Sitar before December 31, 2013.

3. In December 2012, Sitar sold inventory to Ludowicz for $18,000. This inventory had cost Sitar $12,000. At December 31, 2012, this inventory remained unsold by Ludowicz. However, it was all sold by Ludowicz before December 31, 2013. The tax rate is 30%.

Required

(a) Calculate the balance in the Investment in Sitar account on the statement of financial position at December 31, 2013, under IAS 28.

(b) Calculate the balance in the Investment in Sitar account on the statement of financial position at December 31, 2013, under ASPE.