Whispering Winds Corp. is facing a decision as to whether to purchase 40% of Kyla Corp.s shares for $1.20 million cash, giving Whispering Winds significant influence over the investee company, or 60% of Kylas shares for $1.80 million cash, making Kyla a subsidiary company. The book value of Kylas net assets is $3.00 million (assets are $12 million and liabilities are $9.00 million).

How will this investment affect Whispering Windss statement of financial position if Whispering Winds acquires a 40% interest, assuming Whispering Winds applies IFRS? Indicate the immediate effect on Whispering Windss total assets, total liabilities, and shareholders' equity.

How will this investment affect Whispering Windss statement of financial position if Whispering Winds acquires a 60% interest, assuming Whispering Winds applies IFRS? Indicate the immediate effect on Whispering Windss total assets, total liabilities, and shareholders equity.

Assets Liabilities Shareholders' equity $ 1.2 million Invest. in Associate $ 0 million No Effect $ 0 million $ 1.08 million Cash million No Effect $ 0 million $ 0 million No Net Effect V $ 0 million No Net Effect $ million Assets Liabilities Shareholders' equity Invest. in Associate 1.8 million 0 million + 0 million Cash 1.8 i million No Effect 0 million No Effect 0 million 3.6 million 0 million 0 million