On January 1, 2023, Wayne Corporation acquired another 151,250 common shares of Garth Company for $35 each. The book values of Garths net assets were equal to fair values except for specialized equipment, which was understated by $48,000. The equipment had an estimated remaining life of 8 years. During 2023, Garth reported net income of $730,000 and paid dividends of $200,000. At December 31, 2023, the fair value of Garths shares was $43 per share.

REQUIRED:

1. Prepare the journal entries on the books of Wayne Corporation for the investment in Garth for the 2023 fiscal year. (4 Marks)