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On January 1, 2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $260 million cash. At the date
On January 1, 2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $260 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $700 million. Their book value was $600 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 $240 million. During 2018, Lake declared and paid cash dividends of $30 million. The buildings have a remaining life of 10 years. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Complete the table below. (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10)). ($ in millions) Cost Fair Value Cameron's assets Book Value Cameron's assets Investee Net Assets Ownership Interest Net Assets Purchased Difference $ 260 %= %= $ 0 $ 0 Attributable to: Investment revenue Years Adjustment < Required 1 Calculation Required 1 GJ >
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