Problem $1-28($Algo$)($LO $1-4,1-5,1-6$b $1-7)$

Harper, Incorporated, acquires $40$ percent of the outstanding voting stock of Kinman Company on January $1,2023,$ for $$418,700$ in cash. The book value of Kinman's net assets on that date was $$875,000,$ although one of the company's buildings, with a $$74,200$ carrying amount, was actually worth $$127,950.$ This building had a $10-$year remaining life. Kinman owned a royalty agreement with a $20$year remaining life that was undervalued by $$118,000.$

Kinman sold inventory with an original cost of $$111,300$ to Harper during $2023$ at a price of $$159,000.$ Harper still held $$19,950($transfer price$)$ of this amount in inventory as of December $31,2023.$ These goods are to be sold to outside parties during $2024.$

Kinman reported a $$40,200$ net loss and a $$25,300$ other comprehensive loss for $2023.$ The company still manages to declare and pay a $$12,000$ cash dividend during the year.

During $2024,$ Kinman reported a $$45,400$ net income and declared and paid a cash dividend of $$14,000.$ It made additional inventory sales of $$98,000$ to Harper during the period. The original cost of the merchandise was $$61,250.$ All but $30$ percent of this inventory had been resold to outside parties by the end of the $2024$ fiscal year.

Required:

Prepare all journal entries for Harper for $2023$ and $2024$ in connection with this investment. Assume that the equity method is applied.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.