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Waters, Inc. acquired 10% of Denton Corporation on Jan. 1, 2012 for $210,000 although Denton's book value on that date was $1,700,000. Denton held land that was undervalued by $100,000 on it's accounting records. During 2012, Denton earned a net income of $240,000 while paying cash dividends of $90,000. On January 1, 2013, Waters purchased an additional 30 percent of Denton for $600,000. Denton's land is still undervalued on that date, but then by $120,000. Any additional excess cost was attributable to a trademark with a 10 year life for the first purchase and a 9-year life for the second. The initial 10% investment had been maintained at cost because fair values were not readily available. The equity method will now be applied. During 2013 Denton reported income of $300,000 and distributed dividends of $110,000. Prepare all of the 2013 journal entries for Waters.

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