The following selected account balances were taken from the financial statements of Ayayai Inc. concerning its long-term investment in shares of Sheffield Inc. over which it has had significant influence since 2017:

		Dec. 31, 2020			Dec. 31, 2019
Investment in associate, Sheffield Inc.		$507,400			$423,800
Investment income recorded for Sheffield		17,600			10,700

At December 31, 2020, the following information is available:

1.		Ayayai purchased additional common shares in Sheffield Inc. on January 2, 2020, for $72,000. As a result of this purchase, Ayayais ownership interest in Sheffield increased to 40%.
2.		Sheffield reported income of $44,000 for the year ended December 31, 2020.
3.		Sheffield declared and paid total dividends of $15,000 on its common shares for the year ended December 31, 2020.

(a)

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Determine the balance of the Investment in Sheffield Inc. account at December 31, 2020, assuming Ayayai Inc. uses the equity method for this investment.

Balance Dec. 31, 2020

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(b)

Prepare a table that contrasts the direct and indirect methods for presenting all transactions related to the Ayayai Inc. investment on Ayayais statement of cash flows based on the assumption that Sheffield uses IFRS and adopts the policy of classifying dividends received as investing activities. Be specific about the classification in the statement for each item that is reported. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank. Enter 0 for amounts.)

		Direct		Indirect
Operating Activities
Cash Received for DividendsCash Paid for Sheffield Inc. SharesSale of Investment in Sheffield Inc.Equity Income of Sheffield Inc.		$		$
Investing Activities
Cash Received for DividendsCash Paid for Sheffield Inc. SharesEquity Income of Sheffield Inc.Sale of Investment in Sheffield Inc.
Cash Received for DividendsEquity Income of Sheffield Inc.Sale of Investment in Sheffield Inc.Cash Paid for Sheffield Inc. Shares