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, Inc , on January 2, 2021, for $520 million At the date of purchase, the book value of Vancouver's net assets was $835 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 $5 million for the inventory and by $30 million for the plant facilities The estimated useful life of the plant facilities is 15 years All inventory acquired was sold during 2021 Vancouver reported net income of $140 million for the year ended December 31, 2021 Vancouver paid a cash dividend of $30 million Required 1 Prepare all appropriate journal entries related to the investment during 2021 Record the entry related to the purchase 2 Record the entry related to the net income 3 Record the entry related to the dividends 4 Record the entry related to the inventory adjustment 5 Record the entry related to the depreciation adjustment 2 What amount should Northwest report as its income from its investment in Vancouver for the year ended December 31, 2021 3 What amount should Northwest report in its balance sheet as its investment in Vancouver What amount should Northwest report as its income from its investment in Vancouver for the year ended December 31, 2021 and in its balance sheet as its investment in Vancouver (Enter your answers in millions rounded to 1 decimal place, (i e , 5,500,000 should be entered as 5 5) ) 2 Income statement amount million 3 Balance sheet amount million 4 What should Northwest report in its statement of cash flows regarding its investment in Vancouver What should Northwest report in its statement of cash flows regarding its investment in Vancouver (Enter all amounts as positive values Enter your answers in millions (i e , 10,000,000 should be entered as 10) ) Operating cash flow million Investing cash flow million

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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

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, Inc., on January 2, 2021, for $520 million. At the date of purchase, the book value of Vancouver's net assets was $835 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 $5 million for the inventory and by $30 million for the plant facilities. The estimated useful life of the plant facilities is 15 years. All inventory acquired was sold during 2021. Vancouver reported net income of $140 million for the year ended December 31, 2021. Vancouver paid a cash dividend of $30 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2021.

Record the entry related to the purchase.
2

Record the entry related to the net income.
3

Record the entry related to the dividends.
4

Record the entry related to the inventory adjustment.
5

Record the entry related to the depreciation adjustment.

2. What amount should Northwest report as its income from its investment in Vancouver for the year ended December 31, 2021? 3. What amount should Northwest report in its balance sheet as its investment in Vancouver?

What amount should Northwest report as its income from its investment in Vancouver for the year ended December 31, 2021 and in its balance sheet as its investment in Vancouver? (Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).)


2.	Income statement amount	million
3.	Balance sheet amount	million

4. What should Northwest report in its statement of cash flows regarding its investment in Vancouver?

What should Northwest report in its statement of cash flows regarding its investment in Vancouver? (Enter all amounts as positive values. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).)