Access the 2020 consolidated financial statements of TC Energy Corporation (TC) by going to the investor relations section of the company’s website. Answer the questions below for 2020. When applicable, indicate the financial statement or the number of the note to the financial statements where you found the answer.

Required 

(a) What GAAP is used by TC? 

(b) For what type of investments does TC use the equity method? 

(c) What was TC’s largest equity investment in terms of carrying value and what was its percentage ownership in the entity? 

(d) What portion of TC’s income before income taxes came from equity investments? 

(e) What amount of distributions did TC receive from entities in which it had significant influence and joint control? 

(f) Assume that distributions are similar to dividends. If the investments accounted for using the equity method had been reported using the cost method, what would TC’s income before income taxes have been?

(g) Explain whether TC’s profitability looks better or worse when switching to the cost method for its equity investments.

(h) Calculate the current ratio for 2020 and 2019 for the entities underlying TC’s equity investments using the summarized financial information of equity investments. 

(i) Explain whether the liquidity position of the entities underlying TC’s equity investments has improved or deteriorated from 2019 to 2020.