Rockets Corporation purchases a 25% interest in Heats Corporation on January 2, 2020, for $ 750,000. With 25% ownership and proportionate representation in the Board of Directors, Rockets is deemed to possess significant influence. At that time, the carrying amount of Heats' net assets was $ 2,952,000. Any excess of the cost of the investment over Rockets' share of Heats' carrying amount can be attributed to unrecorded intangibles with a useful life of eight (8) years. Heats declared and paid a dividend of $ 33,210 and reported net income of $ 73,800 for its year ending December 31, 2020.

Instructions

1. Prepare Rockets' 2020 journal entries to record all transactions and events related to the investment in its associate. Assume Rockets is a publicly accountable enterprise that applies IFRS.
2. At the end of 2020, what is the carrying value of the Rockets' investment in Heats?Show all details.