Pepper Corporation, a public company, reported the following on its July 31, 2020, balance sheet.

Investments at fair value through other comprehensive income

Hegal Ltd. (5,000 common shares) ................................................... $36,000Baudillard Company (8,000 common shares) ................................... 18,000Investments at fair value through profit or lossLocke Systems Ltd., $70,000 par value, 4% bonds, dueJune 30, 2025 (originally purchased at par) ....................................... 68,000Truman Manufacturing Co. (6,000 common shares) ....................... 14,000Investments at amortized costAquinas Filtering Corp., $100,000, 5% bonds, due June 1,2022, interest payments annually(originally purchased at 98) ................................................................. 99,000Investment in associate, Lincoln Corporation

(3,000 common shares) ....................................................................... 25,000

The following transactions took place during 2021:

1. Dividends were received from Hegal Ltd.

2. Sold the Locke Systems bonds at a loss.

3. Dividends were received from Lincoln Corporation.

4. Annual interest payment was received from Aquinas Filtering.

5. Dividends were received from Baudillard.

6. Paid dividends to shareholders of Pepper Corporation.

7. Sold the 1,500 Hegal common shares at a loss.

8. Received the financial statements from Lincoln Corporation reporting a profit for the year.

9. Purchased 4,000 additional shares of Baudillard Company.

10. Accrued interest on the Aquinas bonds at year end.

11. Received the financial statements from Aquinas Filtering Corp. reporting a profit for the year.

12. The fair value of Baudillard Company?s shares was greater than the carrying amount at year end.

13. The fair value of the Aquinas Filtering bonds was less than the carrying amount at year end.

14. The fair value of Truman Manufacturing?s shares was greater than the carrying amount.

15. The fair value of the remaining Hegal common shares was less than the carrying amount at year end.

Instructions

Using the following table format, indicate whether each of the above transactions would result in an increase (+), a decrease (?), or no effect (NE) in each category. The first one has been done for you as an example.

Taking It Further Assume instead that Pepper Corporation is a private company. How would your response to the question differ if the company reported under ASPE? What choices would the company have for reporting the investment in an associate?

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Statement of Comprehensive Income Other Balance Sheet Income Statement Shareholders' Revenues Expenses Assets Liabilities and Gains and Losses Profit Comprehensive Income Equity NE NE NE