Harper, Incorporated, acquires $40$ percent of the outstanding voting stock of Kinman Company on January $1,2023,$ for $$365,700$ in

cash. The book value of Kinman's net assets on that date was $$760,000,$ although one of the company's buildings, with a $$71,200$

carrying amount, was actually worth $$111,450.$ This building had a $10-$year remaining life. Kinman owned a royalty agreement with a

$20-$year remaining life that was undervalued by $$114,000.$

Kinman sold inventory with an original cost of $$65,100$ to Harper during $2023$ at a price of $$93,000.$ Harper still held $$22,800$

$($transfer price$)$ of this amount in inventory as of December $31,2023.$ These goods are to be sold to outside parties during $2024.$

Kinman reported a $$43,600$ net loss and a $$27,500$ other comprehensive loss for $2023.$ The company still manages to declare and

pay a $$5,000$ cash dividend during the year.

During $2024,$ Kinman reported a $$56,400$ net income and declared and paid a cash dividend of $$7,000.$ It made additional

inventory sales of $$74,000$ to Harper during the period. The original cost of the merchandise was $$46,250.$ All but $30$ percent of

this inventory had been resold to outside parties by the end of the $2024$ fiscal year.

Required:

Prepare all journal entries for Harper for $2023$ and $2024$ in connection with this investment. Assume that the equity method is

applied.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round

intermediate calculations.