In early January 2023 , Sarasota Inc., a private enterprise that applies ASPE, purchased 40% of the common shares of Washi Corp. for $443,000. Sarasota 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 $810,000. 3. The company depreciates its capital assets on a straight-line basis. 4. Washi reported net income of $176,000 and declared and paid dividends of $121,000 in 2023 . (a) Prepare the journal entry to record Sarasota'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.) Assuming Ayayai applies the equity method to account for its investment in Washi, prepare the journal entries to record Ayayai'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 0 for the amounts. List all debit entries before credit entries.) Assume the same facts as above and in part (b), except that Washi's net income included a loss on discontinued operations of $44,000 (net of tax). Prepare the journal entries necessary to record Ayayai'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.) Assume that Ayayai is a publicly accountable enterprise that applies IFRS and therefore also applies the equity method to a for its associate. In addition to the information in parts (a) and (b), you are told that Washi reports an unrealized gain of $52, on investments accounted for using FV-OCI. If Ayayai reports net income of $200,000 and an unrealized gain in OCl of $11, on its own financial statements before including the results of its investment in Washi, determine Ayayai's net income, other comprehensive income, and comprehensive income reported on its 2023 statement of comprehensive income. Neither Ayay. Washi reclassifies realized gains and losses on FVOCl equity investments to net income. Ignore income taxes. Net income Other comprehensive income $ Comprehensive income
