b. Assuming Flounder Inc applies the equity method to account for its investment in Washi, prepare the journal entries to record Flounder Inc's equity in the net income and the receipt of dividends from Washi Corp. in 2023.

Account Titles	Debit	Credit
Cash
Investment in Associate
(To record collection of dividend)
Investment In Associate
Investment Income or Loss
(To record investment income)
(To record depreciation of fair value difference)

In early January 2023, Flounder Inc., a private enterprise that applies ASPE, purchased 40\% of the common shares of Washi Corp. for $361,000. Flounder 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 information: 1. Both the carrying amount and fair value are the same for non-depreciable assets and for liabilities. 2. The fair value of the assets subject to depreciation is $660,000. 3. The company depreciates its capital assets on a straight-line basis. 4. Washi reported net income of $143,000 and declared and paid dividends of $99,000 in 2023 . (a) Prepare the journal entry to record Flounder's investment in Washi. Assume that any unexplained payment is goodwill. (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. List debit entry before credit entry.)