UVW Inc. purchased 40 percent of RST Ltd.'s voting stock on January 1, 2016, for £6 million in cash. At the date of acquisition, RST reported its total assets at £90 million and its total liabilities at £84 million. Investigation revealed that RST's equipment (12-year life) was overvalued by £3 million and it had an unreported trademark (6-year life) valued at £900,000. RST declares and pays £180,000 in dividends and reports net income of £320,000 in 2023.

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