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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
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 $14.80 per share at December 31 . Whispering Winds, a private Canadian corporation, applies ASPE. (a) 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 Under the assumption that the 30% holding of Nadal does not give Whispering Winds significant influence over Nadal, identify he 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.) Question 5 of 5 Dividend Revenue (To record receipt of dividend) Dec. 31,2023 Investment Income or Loss FV-NI Investments (To record fair value adjustment) Cost method: Jan. 3, 2023 FV-NI Investments Cash (To record investment purchase) Sep. 21,2023 Cash Dividend Revenue eTextbook and Media
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