Investor Ltd bought a 40% interest of Investee Ltd at a cost of $210,000. At acquisition date, the fair value of Investee Ltd is:

Contributing equity $300,000

Retained earnings $180,000

2 years later, the record of Investee Ltd. shows:

Contributing equity $300,000

Retained earnings (opening) $225,000

Profit after tax $60,000

Dividend paid $30,000

There is an equity increase of $75,000 in the post-acquisition period from the date of acquisition. Investee Ltd. paid $30,000 total dividend from its post-acquisition profits. It has been found that there are 'unrealised gains/profits' from the sale of Investee Ltd. to Investor Ltd. of $12,000 this year and $20,000 last year. Tax rate is 30%.

Required:

Prepare the journal entries for Investor Ltd to account for the investment in Investee Ltd using the equity method of accounting under AASB128.