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Exercise 12-23 (Algo) Equity method [LO12-6, 12-7] On January 1, 2021, Cameton ke, bought 30% of the outstanding common stock of Lake Corstruction Company for

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Exercise 12-23 (Algo) Equity method [LO12-6, 12-7] On January 1, 2021, Cameton ke, bought 30\% of the outstanding common stock of Lake Corstruction Company for $420 milion cash, giving Cameron the ablity to exercise significant influence over Lake's operatiors. A the date of acquisition of the stock, 7 ines net assets had a far value of $800 milion, its bock value was $700 milian. The diffecence was atributable bo the fair value of take's buildings and is fand exteeding book value, esch accourting for one-haif of the difference. Lake's net income far the year ended. December 34, 2021, was $250 millon. Duting 2021, Like dectared and pald cash dividends of $30 milion, The buldingt have a remaining He of 5 years. Aeguired: 1. Complete the table below and prepare all appropriate journal entries related to the liewestmen during 202t, assuming Camecon: accourts for this investment by the equity method 2. Deterimine the amounts to be reported ty Cameron. Comblete this questien by entering your answers in the tabs belewi On January 1, 2021, Cameron lnc, bought 30% of the outstanding common stock of Lake Construction Compary for $420 millan cash, giving Cameron the ability to exercise significant influence over Lake's operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $800 million. its book value was $700 million. The difference was attributable to the folit 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 31,2021 , was $250 million, During 2021, Lake declared and paid cash dividends of $30 million, The bulidings have a remaining life of 5 years. Required: 1. Complete the table below and prepare all appropriate journal entries related to the investment during 2021, 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. Prepare al appropriate joumal entries relased to the imvestment during 2021, assuming Cameron accounts for this insestinent by the eauity method. (If no entry is required for a transactorfevent, select "No fournat entry required" in the first account fold. Eriter' your answer in millions, (i,e.1 $0,000,000 should be entered as 10)1.)

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