5

On January 1, 2018, Cameron Inc bought 30% of the outstanding common stock of Lake Construction Company for $420 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $800 million. Thelr book value was $700 million. The difference was attributable to the falr value of Lake's butlidings and its land exceeding book value, each accounting for one half of the difference Lake's net Income for the year ended December 31, 2018, was $250 milion. During 2018. Lake declared and pald cash dividends of $30 million. The buildings have a remaining lffe of 5 years. Required: 1 Complete the table below and prepare all appropriate journal entries related to the investment during 2018, assuming Cameron accounts for this investment by the equity method 2 Determine the amounts to be reported by Cameron. Complete this question by entering your answers in the tabs below. Required 1 CalculationReguired i G Required 2 Complete the table below. (Enter your answers in milions, Le. 10.000.000 shouls be entered as 10). InvesteeOwnersh Net Assets Net Assets Difference Purchased (S in millions) Cost Fair Value Cameron's assets Book Value Cameron's assets interest Attributable to: 430 Years Adjustment investment revenue On January 1, 2018, Cameron Inc. bought 30% of the outstanding common stock of Lake Construction Company for $420 milion cash. At the date of acquistion of the stock, Lake's net assets had a falr value of $800 million. Thelr book value was $700 million. The difference was attributable to the falr value of Lake's bulldings and Its land exceeding book value, each accounting for one-half of the difference. Lakes net Income for the year ended December 31, 2018, was $250 million. During 2018, Lake declared and paid cash divdends of $30 millon. The buildings have a remalning lIfe of 5 years. Required: 1 Complete the table below and prepare all appropriate journal entries related to the Investment during 2018, assuming Cameron accounts for this Investment by the equity method. 2 Determine the amounts to be reported by Cameron. Complete this question by entering your answers in the tabs below. Required CalculationRequired GRequired 2 Determine the amounts to be reported by Cameron. (Amounts to be deducted should be i your answers in millions, (i.e., 10,000,000 should be entered as 10).) in millions a Investment in Cameron's 2018 balance sheet b. Investment revenue in the incoma statement c Investing activities in the statement of cash fows