How about:
When the anchor is in the boat, it displaces its mass in water. When the anchor is in the water, the anchor displaces its volume in water.
When the anchor is in the boat, it displaces its mass in water. When the anchor is in the water, the anchor displaces its volume in water.
Also, you need to replace "it's" with "its" in your solution. (In 2005, I edited the Definitive and Extended Edition of The Feynman Lectures on Physics for physics content and for spelling/grammar. Could you tell? :-)