On January 1, 2024, Wayne Corporation acquired another 82,500 common shares of Garth Company for $43 per share. The book values of Garths net assets were equal to fair values except for specialized equipment, which was now understated by $42,000 and had an estimated remaining useful life of 7 years. During 2024, Garth Company reported a net income of $1,100,000 and paid dividends of $320,000. At December 31, 2024, the fair value of Garths shares was $52 per share.

REQUIRED:

1. Prepare the journal entries on the books of Wayne Corporation for the investment in Garth for the 2024 fiscal year. (6 Marks)