Vaughn Inc acquired 125,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2020 for $806,250. At the time of purchase, Tahiti Ltd. depreciable assets were undervalued by $42,840. The depreciable assets had a remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.55 per share on July 31, 2020. Tahiti Ltd. reported $1.2 million as net income on December 31, 2020 for the year ending on this date. Assume that Vaughn Inc. is in a position to exercise significant influence over Tahiti Ltd, and that Vaughn follows IFRS. Prepare all the journal entries for 2020 in the books of Vaughn Inc. relating to above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date Account Titles and Explanation Debit Credit (To record investment income) (To record amortization of fair value difference) Calculate the balance in Vaughn's "Investment in Tahiti: account at December 31, 2020." Investment in Tahiti $