Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought $40\%$ of the outstanding common shares of Vancouver Timber and Milling, Incorporated on January $2,2024,$ for $$410$ million.

At the date of purchase, the book value of Vancouver's net assets was $$780$ million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value exceeded book value by $$10$ million for the inventory and by $$15$ million for the plant facilities.

The estimated useful life of the plant facilities is $15$ years. All inventory acquired was sold during $2024.$

Vancouver reported net income of $$150$ million for the year ended December $31,2024.$ Vancouver paid a cash dividend of $$20$ million.

Required:

Prepare all appropriate journal entries related to the investment during $2024.$

What amount should Northwest report as its income from its investment in Vancouver for the year ended December $31,2024?$

What amount should Northwest report in its balance sheet as its investment in Vancouver?

Complete this question by entering your answers in the tabs below.

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Prepare all appropriate journal entries related to the investment during $2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Journal entry worksheet

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Record the entry related to the depreciation adjustment.

Note: Enter debits before credits.

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