Heritage Ltd. was organized on January 2, 2023. The following investment transactions and events occurred during the following months:

Assume that Heritage has a significant influence over Port with its 20% share.

Required1. Give the entries to record the preceding transactions in Heritage’s books.2. Calculate the carrying value per share of Heritage’s investment as reflected in the investment account on January 4, 2025.3. Calculate the change in Heritage’s equity from January 2, 2023, through January 5, 2025, resulting from its investment in Port.

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2023 Jan. 6 Heritage paid $581,500 (including transaction fees of $50) for 50,600 shares (20%) of Port Inc. outstanding common shares. Apr. 30 Port declared and paid a cash dividend of $1.20 per share. 31 Port announced that its profit for 2023 was $540,000. Fair value of the shares was $12.40 per share. Dec. 2024 Oct. 15 Port declared and paid a cash dividend of $0.80 per share. Dec. 31 Port announced that its profit for 2024 was $690,000. Fair value of the shares was $12.78 per share. 2025 Jan. 5 Heritage sold all of its investment in Port for $688,000 cash.