On January $1,2021,$ Cameron Inc. bought $10\%$ of the outstanding common stock of Lake Construction Company for $$100$ million cash, giving Cameron the ability to exercise significant influence over Lake$$s operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $$600$ million. Its book value was $$500$ 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$$s net income for the year ended December $31,2021,$ was $$100$ million. During $2021,$ Lake declared and paid cash dividends of $$20$ million. The buildings 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.On January $1,2021,$ Cameron Inc. bought $10\%$ of the outstanding common stock of Lake Construction Company for $$100$ million 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 $$600$ million. Its book value was $$500$ 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 $31,2021,$ was $$100$ million. During $2021,$ Lake declared and paid cash dividends of $$20$ million. The buildings have a

remaining life of $5$ years.

Required:

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.

Determine the amounts to be reported by Cameron.

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

Required $1$

Calculation

Required $1GJ$

Required $2$

Complete the table below. $($Enter your answers in millions, $($i$.$e$.,10,000,000$ should be entered as $10)).$