Culver Corp. is facing a decision as to whether to purchase 40% of Kyla Corp.s shares for $2.60 million cash, giving Culver significant influence over the investee company, or 60% of Kylas shares for $3.90 million cash, making Kyla a subsidiary company. The book value of Kylas net assets is $6.50 million (assets are $28 million and liabilities are $21.50 million).

Part 1

How will this investment affect Culvers statement of financial position if Culver acquires a 40% interest, assuming Culver applies IFRS? Indicate the immediate effect on Culvers total assets, total liabilities, and shareholders equity. (Enter answers in millions to 2 decimal places, e.g. 1.25. Do not leave any answer field blank. Enter 0 for amounts and no effect for effects. If an amount reduces the account balance then enter with negative sign.)

Assets				Liabilities				Shareholders equity
$enter a dollar amount in millions million		Select -No Effect - Invest. in Associate -Cash -Significant Influence Investment - No Effect		$enter a dollar amount in millions million		Select -No Effect - Invest. in Associate -Cash -Significant Influence Investment - No Effect		$enter a dollar amount in millions million		Select -No Effect - Invest. in Associate -Cash -Significant Influence Investment - No Effect
$enter a dollar amount in millions million		Select -No Effect - Invest. in Associate -Cash -Significant Influence Investment - No Effect		$enter a dollar amount in millions million		Select -No Effect - Invest. in Associate -Cash -Significant Influence Investment - No Effect		$enter a dollar amount in millions million		Select -No Effect - Invest. in Associate -Cash -Significant Influence Investment - No Effect
$enter a total amount in millions million		Select -No Effect - Invest. in Associate -Cash -Significant Influence Investment - No Effect		$enter a total amount in millions million	Select -No Effect - Invest. in Associate -Cash -Significant Influence Investment - No Effect			$enter a total amount in millions million		Select -No Effect - Invest. in Associate -Cash -Significant Influence Investment - No Effect

How will this investment affect Culvers statement of financial position if Culver acquires a 60% interest, assuming Culver applies IFRS? Indicate the immediate effect on Culvers total assets, total liabilities, and shareholders equity. (Enter answers in millions to 2 decimal places, e.g. 1.25. Do not leave any answer field blank. Enter 0 for amounts.)

Assets

Liabilities

Shareholders equity

Invest. in Associate

select an effect No Effect-+

enter a dollar amount in millions million

select an effect No Effect-+

enter a dollar amount in millions million

select an effect -No Effect+

enter a dollar amount in millions million

Cash

select an effect +No Effect-

enter a dollar amount in millions million

select an effect +No Effect-

enter a dollar amount in millions million

select an effect -+No Effect

enter a dollar amount in millions million

select an effect +-No Effect

enter a total amount in millions million

select an effect -No Effect+

enter a total amount in millions million

select an effect +-No Effect