ANSWER ALL PARTS TO THE PROBLEM.
On January 1, 2018, Cameron Inc. bought 30% of the outstanding common stock of Lake Construction Company for $330 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $700 million. Their book value was $600 million. The E difference was attributable to the fair value of Lake's buildings 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 $110 million. During 2018, Lake declared and paid cash E dividends of $20 million. The buildings have a remaining life of 5 years. Required: 1. Complete the table below and prepare all appropriate journal entries related to the investment during 2018, assuming Cameron accounts for this investment by the equity method. 2. Determine the amounts to be reported by Cameron. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G Required 2 Complete the table below. (Enter your answers in millions, i.e., 10,000,000 should be entered as 10)). ($ in millions) Investee Net Assets Ownership Interest Difference Attributable to: Net Assets Purchased $ 330 Cost Fair Value Cameron's assets Book Value Cameron's assets $ 0 Years Adjustment Investment revenue On January 1, 2018, Cameron Inc. bought 30% of the outstanding common stock of Lake Construction Company for $330 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $700 million. Their book value was $600 million. The difference was attributable to the fair value of Lake's buildings 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 $110 million. During 2018, Lake declared and paid cash dividends of $20 million. The buildings have a remaining 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 1 Calculation Required 1 GJ Required 2 Prepare all appropriate journal entries related to the investment during 2018, assuming Cameron accounts for this investment by the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet Record the investment in Lake Construction shares. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet
