Waterway Inc acquired $122,000$ common shares, which is $25\%$ of the outstanding common shares, of Tahiti Ltd$.$ on January $1,2023$ for

$$793,000.$ At the time of purchase, Tahiti Ltd$\text{'}$s depreciable assets were undervalued by $$39,680.$ 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\mathrm{.}60$ per share on July $31,2023.$

Tahiti Ltd$.$ reported $$1\mathrm{.}1$ million as net income on December $31,2023$ for the year ending on this date. Assume that Waterway Inc. is in

a position to exercise significant influence over Tahiti Ltd$,$ and that Waterway follows IFRS.

Prepare all the journal entries for $2023$ in the books of Waterway 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 O for the amounts. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

$($To record investment income$)$

$($To record amortization of fair value difference$)$

Calculate the balance in Waterway's ${?}^{}$ Investment in Tahiti: account at December $31,2023."$