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Please help with part $($d$)$: In early January $2023,$ Pronghorn Inc., a private enterprise that applies ASPE, purchased $40\%$ of the common shares of Washi Corp.

for $$426,000.$ Pronghorn was now able to exercise considerable influence in decisions made by Washi's management. Washi's

statement of financial position reported the following information at the date of acquisition:

Additional informatio Your answer is correct.

Assuming Pronghorn applies the equity method to account for its investment in Washi, prepare the journal entries to record

Pronghorn's equity in the net income and the receipt of dividends from Washi in $2023.($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 O for

the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Credit

$($To record collection of dividend$)$

Investment Income or Loss

$($To record investment income$)$

Investment Income or Loss

Investment in Associate

$($To record depreciation of fair value difference$)$ Your answer is correct.

Assume the same facts as above and in part $($b$),$ except that Washi's net income included a loss on discontinued operations of

$$40,000($net of tax$).$ Prepare the journal entries necessary to record Pronghorn's equity in the net income of Washi for $2023.$

Ignore income taxes. $($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 O for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Investment in Associate

Loss on Discontinued Operations

Investment Income or Loss

$($To record investment income and loss$)$

Investment Income or Loss

Investment in Associate

$($To record depreciation of fair value difference$)$n:

Both the carrying amount and fair value are the same for non$-$depreciable assets and for liabilities.

The fair value of the assets subject to depreciation is $$780,000.$

The company depreciates its capital assets on a straight$-$line basis.

Washi reported net income of $$170,000$ and declared and paid dividends of $$116,000$ in $2023.$ Assume that Pronghorn is a publicly accountable enterprise that applies IFRS and therefore also applies the equity method to

account for its associate. In addition to the information in parts $($a$)$ and $($b$),$ you are told that Washi reports an unrealized gain of

$$47,000$ on investments accounted for using FV$-$OCl. If Pronghorn reports net income of $$179,300$ and an unrealized gain in OCl

of $$10,500$ on its own financial statements before including the results of its investment in Washi, determine Pronghorn's net

income, other comprehensive income, and comprehensive income reported on its $2023$ statement of comprehensive income.

Neither Pronghorn nor Washi reclassifies realized gains and losses on FV$-$OCl equity investments to net income. Ignore income

taxes.

Net income

$

Other comprehensive income

$

Comprehensive income

$

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