Red Industries purchased a 30% interest in Blue Corporation on January 1, 2022 for $500,000. At that time, the net carrying value of Blues assets was $1,400,000. Any excess of the cost of the investment over Reds share of Blues carrying amount can be attributed to unrecorded intangibles with a useful life of 10 years.

On June 6, 2022, Blue Corporation declared and paid a dividend of $9,000.

For the year ended December 31, 2022, Blue Corporation reported net income of $240,000.

Instructions

Prepare Red Industries 2022 entries to record all transactions and events related to the investment in its associate. Assume Red Industries is a publicly accountable enterprise that applies IFRS.