Question
On January 1, 2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $320 million cash. At the date of
On January 1, 2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $320 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. Lakes net income for the year ended December 31, 2018, was $160 million. During 2018, Lake declared and paid cash dividends of $20 million. The buildings have a remaining life of 10 years.
What is the investing activities in the statement of cash flows?
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