Xlaoming Ltd., a joint venture, was formed on January 1, 2023. Watanabe Corp., one of the three founding venturers, invested equipment in the joint venture. Watanabe had acquired the equipment a few years ago at a cost of $3,000,000, and the carrying amount on Watanabe's records on January 1,2023 was $1,600,000. The other two venturers invested capital assets worth $2,800,000 and cash, $1,200,000. The venturers agreed that the equipment had a fair value of $2,000,000, and a remaining useful life of approximately six years. Watanabe received a 35% interest and $600,000 in cash in return for investing this equipment in the venture. Assume that the transfer of equipment by Watanabe to Xiaoming possesses commercial substance. In 2023, Watanabe sold inventory to Xiaoming for $400,000, at a gross profit of $120,000. Xiaoming sold 70% of this inventory to outside parties by the end of 2023. Also in 2023, Xiaoming sold land with a book value of $200,000 to Watanabe for $260,000. For the year ended December 31, 2023, Xiaoming recorded net income of $600,000 and paid a dividend of $300,000. In 2024, Watanabe sold inventory costing $340,000 to Xiaoming for $500,000. Xiaoming sold 70% of this inventory to outside parties by the end of 2023 . Also in 2024 , Watanabe sold 1/3 of the land it had purchased from Xiaoming to an unrelated party at a profit of $40,000. Xiaoming's net income for 2024 was $1,200,000, and it paid a dividend of $120,000. Both Watanabe and Xiaoming have an income tax rate of 25%. Required: a. Prepare all journal entries that Watanabe will record related to its investment in Xiaoming for the year ended December 31,2023. Show calculations for investment income. (13 marks) b. Calculate Watanabe's investment income from Xiaoming for the year ended December 31, 2024 (7 marks) c. Calculate the amount at which Watanabe will report its Investment in Xiaoming account on the balance sheet dated December 31, 2024