On January 1, 2023, Martinez Company purchases 205,000 of Investee Company's 820,000 outstanding common shares for $7,175,000. Martinez has therefore acquired a 25% interest in Investee. The book value (net assets) of Investee on this date is $23,780,000, and Martinez's proportionate share is 25% of this, or $5,945,000. Martinez has therefore paid $1,230,000 in excess of its share of the book value ($7,175,000$5,945,000). Investee's depreciable assets are undervalued on its books by $2,760,000. Martinez estimates the remaining life of the depreciable assets to be eight years. Investee Company later reports net income of $2,670,000 for its 2023 fiscal year, including a loss on discontinued operations of $400,000. Income before discontinued operations, therefore, is $3,070,000. Dividends of $1,350,000 are declared and paid by Investee on December 31, 2023. Prepare the journal entries to record the events in 2023, including the acquisition. (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.)