On January 3, 2020, Flounder Limited purchased 1,700 (17%) of the common shares of Sonja Corp. for $247,760. The following information is provided about the identifiable assets and liabilities of Sonja at the date of acquisition: Carrying Amount Fair Value Assets not subject to depreciation $478,000 $478,000 Assets subject to depreciation (10 years remaining) 767,000 917,000 Total identifiable assets 1,245,000 1,395,000 Liabilities 117,000 117,000 During 2020, Sonja reported the following information on its statement of comprehensive income: Income before discontinued operations $150,000 Discontinued operations (net of tax) (52,700 ) Net income and comprehensive income 97,300 Dividends declared and paid by Sonja November 15, 2020 77,000 Assume that the 17% interest is enough to make Sonja an associate of Flounder, and that Flounder is required to apply IFRS for its financial reporting. The fair value of Sonja's shares at December 31, 2020, is $155 per share. Prepare the journal entry to record Flounder's purchase of the Sonja shares on January 3, 2020. (Hint: Any unexplained payment represents unrecognized goodwill of Sonja.) (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.) Date Account Titles and Explanation Debit Credit Jan. 3, 2020 Investment in Associate 247,760 Cash 247,760 Prepare all necessary journal entries associated with Flounder's investment in Sonja for 2020. Depreciable assets are depreciated on a straight-line basis. (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.) Account Titles and Explanation Debit Credit (To record dividends collected) (To record investment income or loss) (To record amortization of fair value difference) Prepare the journal entry if you were informed that Flounder's long-term business prospects had deteriorated and that the most Flounder could expect to recover in the future or to sell its investment in Sonja for at December 31, 2020, is $122 per share. (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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020