RST Corporation purchased 27 percent of UVW Ltd.'s voting stock on January 1, 2016, for £3.8 million in cash. At the date of acquisition, UVW reported its total assets at £60 million and its total liabilities at £54 million. Investigation revealed that UVW's plant (20-year life) was overvalued by £2 million and it had an unreported software (4-year life) valued at £700,000. UVW declares and pays £140,000 in dividends and reports net income of £280,000 in 2023.

Required: Prepare the necessary journal entries on RST's books to report the above information for 2023 assuming RST uses the equity method to report its investment.