Whoa there... You have made this problem way more difficult than it needs to be. To be honest, I didn't read through all of your symbols because it's like decrypting a secret code, so instead I'll just explain it more simply (
as I did in this thread):
First off, yes, the mass of the displaced liquid = mass of the object.
And yes, the density of ice < density of water.
And again yes, ice turns to water, so the density increases (that is, the H2O that was in the form of ice has increased density because now it is liquid water)
And yes, the density increases, so the volume (of the ice cube) decreases (because now it is liquid)...
But here is where your logic falters:
When the ice cube is floating, the amount of water that it displaces is only equivalent to the volume of the ice cube that is submerged. Let's say half of the ice cube is submerged (way less than it should be, but just for simplicity). The other half is floating above the water. This means that the ice cube displaces a volume of liquid equal to half of it's own volume. But this volume of water (that is displaced) has the same mass as the
entire ice cube. So when the ice melts, it now has increased density (exactly the same density of the water that it was displacing). Since the mass of the liquid displaced, equaled the mass of the entire ice cube, there is no change in the water level.
Here is a basic equation that gives the relationship of the volume and densities of an object
that floats in a given fluid (because it is a fluid, it can be liquid or gas). Don't just memorize the equation. Understand the relationship, and try to derive it for yourself to get a better understanding of buoyancy:
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