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On January 1 , 2 0 1 8 , Cameron Inc. bought 2 0 % of the outstanding common stock of Lake Construction Company for

On January 1,2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $300 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value was $800 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 $150 million. During 2018, Lake declared and paid cash dividends of $30 million. The buildings have a remaining life of 10 years.
Required:
Prepare all appropriate journal entries related to the investment during 2018, assuming Cameron accounts for this investment by the equity method.
Determine the amounts to be reported by Cameron:
a. As an investment in Cameron's 2018 balance sheet
b. As investment revenue in the income statement
c. Among investing activities in the statement of cash flows
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