Practice Problem 6 (10 minutes) 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: a) 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. b) 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. Practice Problem 5 (10 minutes) . Recently, they began raising baby chicks and hens for sale to consumers at farmers markets. The market sells baby chicks that will turn into egg-laying hens at a price of $1 each. A one year from the time a chick hatches until it becomes an egg-laying hen. Assume costs to sell are 10% of the value of the chick/hen. Required: a) Prepare the journal entry for the initial measurement of one baby chick. b) Assuming the baby chick has matured into an egg-laying hen at the end of the next reporting period, prepare the journal entry to record the change in value. DR Biological Asset - -Baby chicks. CR Gain on intial recognition of biological Assets. To record baby chick inventory