f. Assuming that Kang has significant influence over Sandhu, what amount will Kang report on its income statement for 2021 with regard to this investment?

g. How would your answer to part (f) change if Kang reported under ASPE and chose to use the cost method to account for its investment in Sandhu because the shares did not have a quoted market price?

Sandhu Travel Agency Ltd. has 420,000 common shares authorized and 126,000 shares issued on December 31, 2020. On January 2,2021, Lawn Inc. purchased shares of Sandhu Travel Agency for $41 per share. Lawn intends to hold these shares as a long-term investment. Lawn's accountant prepared a trial balance at December 31, 2021, under the assumption that Lawn could not exercise significant influence over Sandhu Travel Agency. Under this assumption, the trial balance included the following accounts and amounts related to the Sandhu investment: Long-term investments $1,449,000 Dividend income 126.000 Unrealized gain on long-term investments 157.500 (a) Your answer has been saved. See score details after the due date. How many shares of Sandhu Travel Agency did Lawn purchase on January 2? (Hint: Subtract the unrealized gain from the investment account.) Number of Shares 31500 Your answer has been saved. See score details after the due date. What percentage of Sandhu Travel Agency's shares does Lawn own? Percentage of Shares own 20 % e Textbook and Media Assistance Used e Textbook 1 e Textbook 2 e Textbook 3 List of Accounts Attempts: 1 of 1 used (c) Your answer has been saved. See score details after the due date. What was the amount of the cash dividend per share that Lawn received from Sandhu Travel Agency in 2021? Cash Dividend per share $ 4 (d) Your answer has been saved. See score details after the due date. What was the fair value per share of the Sandhu Travel Agency shares at December 31, 2021? Market price per share $ 46 e Textbook and Media List of Accounts Attempts: 1 of 1 used (e) Assume that, after closely examining the situation, Lawn's auditors determine that it does have significant influence over Sandhu Travel Agency and that Kang should use the equity method. Accordingly, the investment account balance is adjusted to $1,450,000 at December 31, 2021. What was the net income reported by Sandhu Travel Agency for the year ended December 31, 2021? Profit