In early January 2020, Blue Spruce Inc., a private enterprise that applies ASPE, purchased 40% of the common shares of Washi Corp. for $484,000. Blue Spruce was now able to exercise considerable influence in decisions made by Washis management. Washi Corp.s statement of financial position reported the following information at the date of acquisition:

Assets not subject to being amortized		$242,000
Assets subject to depreciation (10 years average life remaining)		732,000
Liabilities		136,000

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 $885,000.
3.		The company depreciates its capital assets on a straight-line basis.
4.		Washi reported net income of $192,000 and declared and paid dividends of $132,000 in 2020.

Prepare the journal entry to record Blue Spruces investment in Washi Corp. 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.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Assuming Blue Spruce applies the equity method to account for its investment in Washi, prepare the journal entries to record Blue Spruces equity in the net income and the receipt of dividends from Washi Corp. in 2020. (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.)

Account Titles and Explanation	Debit	Credit
enter an account title to record collection of dividend	enter a debit amount	enter a credit amount
enter an account title to record collection of dividend	enter a debit amount	enter a credit amount
(To record collection of dividend)
enter an account title to record investment income	enter a debit amount	enter a credit amount
enter an account title to record investment income	enter a debit amount	enter a credit amount
(To record investment income)
enter an account title to record depreciation of fair value difference	enter a debit amount	enter a credit amount
enter an account title to record depreciation of fair value difference	enter a debit amount	enter a credit amount
(To record depreciation of fair value difference)