On January 2, 2020, St. Pierre Corp. paid $250,000 for a 30% interest in Miquelon Ltd. During 2020, Miquelon declared and paid dividends of $80,000 and reported net income of $260,000.

Both Miquelon and St. Pierre report under IFRS.

Required:

1. Assuming that St. Pierre reports its investment in Miquelon using the equity method, prepare the journal entry to record initial investment, the receipt of the dividend from Miquelon, and its share of the earnings of Miquelon for the year ended December 31, 2020.

2. How would this transaction change if both Miquelon and St. Pierre reported under ASPE, assuming that St. Pierre still reports its investment in Miquelon using the equity method.