3. Waters. Inc., acquired 8 percent of Denton Corporation on January 1, 2021, for $194,000 although Denton's book value on that date was $1,600,000. Denton held land that was undervalued by $220,000 on its accounting records. During 2021, Denton earned a net income of $160,000 while paying cash dividends of $130,000. On January 1, 2022, Waters purchased an additional 20 percent of Denton for $399,400. Denton's land is still undervalued on that date, but then by $320,000. Any additional excess cost was attributable to a trademark with a 11-year life for the first purchase and 10-year life for the second. The initial 8 percent investment had been maintained at cost because fair values were not readily available. The equity method will now be applied. During 2022, Denton reported income of $230,000 and distributed dividends of $170,000. Prepare all of the 2022 journal entries for Waters.