In early January $2023,$ Pronghorn Inc., a private enterprise that applies ASPE, purchased $40\%$ of the common shares of Washi Corp. $($b$)$

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$)$

$($To record investment income$)$

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

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 information:

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 $2023.$