Whispering Winds Inc. purchased $30\%$ of Nadal Corporation's $31,500$ 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

$$41,000.$ On December $31,$ Whispering Winds's year end, Nadal reported net income of $$89,000$ for the year. Nadal shares had a fair value of $$14\mathrm{.}80$ per

share at December $31.$ Whispering Winds, a private Canadian corporation, applies ASPE.

$($a$)$

Your answer is partially correct.

Under the assumption that the $30\%$ holding of Nadal does not give Whispering Winds significant influence over Nadal, identify the possible

accounting methods Whispering Winds 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$.$g$.5,275.)$

Date

Account Titles and Explanation

Debit

Credit

FV$-$NI method:

FV$-$NI Investments

$141750$

$($To record investment purchase$)$

$12300$

$($To record receipt of dividend$)$

Investment Income or Loss

$($To record fair value adjustment$)$

Cost method:

$($To record investment purchase$)$

$[$L I

$($To record receipt of dividend$)$

$141750$

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