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Sarasota Inc acquired 147,000 common shares, which is 25% of the outstanding common shares, of...

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Accounting

Sarasota Inc acquired 147,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2023 for $874,650. At the time of purchase, Tahiti Ltd.s depreciable assets were undervalued by $45,440. The depreciable assets had a remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.50 per share on July 31, 2023. Tahiti Ltd. reported $1.1 million as net income on December 31, 2023 for the year ending on this date. Assume that Sarasota Inc. is in a position to exercise significant influence over Tahiti Ltd, and that Sarasota follows IFRS.

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Prepare all the journal entries for 2023 in the books of Sarasota Inc. relating to above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Calculate the balance in Sarasota's "Investment in Tahiti: account at December 31, 2023

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