In early January 2023, Novak Inc., a private enterprise that applies ASPE, purchased 40% of the common shares of Washi Corp. for $402,000. Novak 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: Assets not subject to being amortized $201,000 Assets subject to depreciation (10 years average life remaining) 608,000 Liabilities 113,000 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 $735,000. 3. The company depreciates its capital assets on a straight-line basis. 4. Washi reported net income of $160,000 and declared and paid dividends of $110,000 in 2023. Assume the same facts as above and in part (b), except that Washi's net income included a loss on discontinued operations of $37,000 (net of tax). Prepare the journal entries necessary to record Novak's equity in the net income of Washi for 2023. Ignore income taxes. (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 all debit entries before credit entries.) Account Titles and Explanation (To record investment income and loss) (To record depreciation of fair value difference) Debit Credit