Riverbed Inc. purchased $30\%$ of Nadal Corporation's $30,500$ outstanding common shares at a cost of $$15$ per share on January $3,2023.$ The purchase price of $$15$ per share was based solely on the book value of Nadal's net assets. On September $21,$ Nadal declared and paid a cash dividend of $$39,400.$ On December $31,$ Riverbed's year end, Nadal reported net income of $$86,000$ for the year. Nadal shares had a fair value of $$14\mathrm{.}80$ per share at December $31.$ Riverbed, a private Canadian corporation, applies ASPE.

$($a$)$

Under the assumption that the $30\%$ holding of Nadal does not give Riverbed significant influence over Nadal, identify the possible accounting methods Riverbed could use under ASPE to account for its investment. Prepare all required $2023$ journal entries under each acceptable method. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record entries in the order displayed in the problem statement. List all debit entries before credit entries. Round answers to $0$ decimal places, e$.8\mathrm{.}5\mathrm{.}275.)$

$($b$)$

Under the assumption that the $30\%$ holding of Nadal gives Riverbed significant influence over Nadal, prepare all required $2023$ journal entries, assuming Riverbed uses the equity method of accounting. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record entries in the order displayed in the problem statement. List all debit entries before credit entries. Round answers to $0$ decimal places, e$.$g$.5,275.)$

Date

Account Titles and Explanation

Debit

Credit

$($To record investment purchase$)$

$($To record collection of dividend$)$

$($To record investment income$)$