Angus Farms Ltd., which follows ASPE, had the following transactions during the fiscal year ended December 31, 2020. 1. On May 1, a used tractor was sold at auction. The information concerning this transaction included: 

Original cost of the tractor................................$52,000 

Carrying amount of tractor at date of sale........21,000 

Cash proceeds obtained at sale..........................22,500 

2. After the seeding season, on June 15, 2020, a plough with an original cost of $6,000 and a carrying amount of $500 was discarded. 

3. On September 1, 2020, a new plough was purchased for $7,700. 

4. On December 30, a section of land was sold to a neighbouring farm called Clear Pastures Ltd. The original cost of the land was $45,000. To finance the purchase, Clear Pastures gave Angus a three-year mortgage note in the amount of $75,000 that carries interest at 5%, with interest payable annually each December 30. 

5. On December 31, 2020, depreciation was recorded on the farm equipment in the amount of $16,600. 

Instructions 

a. Prepare the journal entries that recorded the transactions during the year. 

b. Indicate specifically which sections of the statement of cash flows of Angus Farms Ltd. would report the transactions provided, using the indirect format. 

c. Indicate how your response to part (b) would differ regarding how the statement of cash flows of Angus Farms Ltd. would report the transactions provided, assuming the company uses the direct format. 

d. How would the total amount of operating activities differ for Angus Farms Ltd. if it prepared its statement of cash flows using the indirect vs. direct methods as indicated in parts (b) and (c) above?