Exercise 12-22 Equity method; adjustment for depreciation [L012-6, 12-7 Fizer Pharmaceutical paid $83 million on January 2, 2018, for 3 million shares of Carne Cosmetics common stock. The investment represents a 25% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne's operations Fizer received dividends of $3 per share on December 21, 2018, and Carne reported net income of $80 million for the year endecd December 31, 2018. The fair value of Carne's common stock at December 31, 2018, was $33.50 per share. The book value of Carne's net assets was $224 million. The fair value of Carne's depreciable assets exceeded their book value by $32 million. These assets had an average remaining useful life of eight years. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: Complete the table below and prepare the appropriate journal entries related to the investment during 2018. Complete this question by entering your answers in the tabs below. General Journal Complete the table below. (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10)) Prex5 of 15 EEE Next > 6 7 8 Complete this question by entering your answers in the tabs below. Calculation General Complete the table below. (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10)). Net Assets Purchased (S in millions) Attributable to: Net Assets Interest 83 Purchase Price Fair Value Carne's assets Book Value Carne's assets 256 x 25 | % | 251%) epreciation adj Investment revenue General Journal > Prex 5 of 15 Next > 7 8 General Calculation Journal Prepare the appropriate journal entries related to the investment during 2018. (If no entry is required for a transaction/event, 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 4. Record the investment in Carne Cosmetics shares. Note: Enter debits before credits. General Journal Debit Credit Event Complete this question by entering your answers in the tabs below. Calculation Journal Prepare the appropriate journal entries related to the investment during 2018. (If no entry is required for a transaction/even journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10 ok View transaction list nt nces Journal entry worksheet 3 Record the investment revenues. Note: Enter debits before credits. Event General Journal Debit Credit K Prev 5 of 15Next General Journal Prepare the appropriate journal entries related to the investment during 2018. (If no entry is required for a transac journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entere View transaction list Journal entry worksheet 2 3 4 Record the cash dividends. Note: Enter debits before credits. Event General Journal Debit Credit Complete this question by entering your answers in the tabs below. Calculation Journal Prepare the appropriate journal entries related to the investment during 2018. (If no entry is required for a transaction/event, sele 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 4 Record the depreciation adjustment. Note: Enter debits before credits. Debit Credit Event General Journal aday enteng your answers in the tabs below. CalculationJournal Prepare the appropriate journal entries related to the investment during 2018. (If no entry is required for a transaction/event 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 2 4 Record the fair value adjustment at year-end. Note: Enter debits before credits. General Journal Debit Credit Event 5 Exercise 12-22 Equity method; adjustment for depreciation [L012-6, 12-7 Fizer Pharmaceutical paid $83 million on January 2, 2018, for 3 million shares of Carne Cosmetics common stock. The investment represents a 25% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne's operations Fizer received dividends of $3 per share on December 21, 2018, and Carne reported net income of $80 million for the year endecd December 31, 2018. The fair value of Carne's common stock at December 31, 2018, was $33.50 per share. The book value of Carne's net assets was $224 million. The fair value of Carne's depreciable assets exceeded their book value by $32 million. These assets had an average remaining useful life of eight years. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: Complete the table below and prepare the appropriate journal entries related to the investment during 2018. Complete this question by entering your answers in the tabs below. General Journal Complete the table below. (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10)) Prex5 of 15 EEE Next > 6 7 8 Complete this question by entering your answers in the tabs below. Calculation General Complete the table below. (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10)). Net Assets Purchased (S in millions) Attributable to: Net Assets Interest 83 Purchase Price Fair Value Carne's assets Book Value Carne's assets 256 x 25 | % | 251%) epreciation adj Investment revenue General Journal > Prex 5 of 15 Next > 7 8 General Calculation Journal Prepare the appropriate journal entries related to the investment during 2018. (If no entry is required for a transaction/event, 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 4. Record the investment in Carne Cosmetics shares. Note: Enter debits before credits. General Journal Debit Credit Event Complete this question by entering your answers in the tabs below. Calculation Journal Prepare the appropriate journal entries related to the investment during 2018. (If no entry is required for a transaction/even journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10 ok View transaction list nt nces Journal entry worksheet 3 Record the investment revenues. Note: Enter debits before credits. Event General Journal Debit Credit K Prev 5 of 15Next General Journal Prepare the appropriate journal entries related to the investment during 2018. (If no entry is required for a transac journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entere View transaction list Journal entry worksheet 2 3 4 Record the cash dividends. Note: Enter debits before credits. Event General Journal Debit Credit Complete this question by entering your answers in the tabs below. Calculation Journal Prepare the appropriate journal entries related to the investment during 2018. (If no entry is required for a transaction/event, sele 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 4 Record the depreciation adjustment. Note: Enter debits before credits. Debit Credit Event General Journal aday enteng your answers in the tabs below. CalculationJournal Prepare the appropriate journal entries related to the investment during 2018. (If no entry is required for a transaction/event 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 2 4 Record the fair value adjustment at year-end. Note: Enter debits before credits. General Journal Debit Credit Event 5