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On January 1, 2021, Cameron inc bought 20% of the outstanding common stock of Lake Construction Company for $300 million cash, giving Cameron the ability

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On January 1, 2021, Cameron inc bought 20% of the outstanding common stock of Lake Construction Company for $300 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 $900 million. Its 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, 2021, was $150 million During 2021, Lake declared and paid cash dividends of $30 million The buildings have a remaining life of 10 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 Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 160 Required 2 Determine the amounts to be reported by Cameron (Amounts to be deducted, including losses and cash outflows, should be indicated with a minus sign. Enter your answers in millions, (t.e. 10,000,000 should be entered as 10) (Sin millions) 3 300 Investment in Cameron's 2021 balance sheet Investment revenue in the income statement c. Investing activities in the statement of cash flows No Transaction Debit Credit 1 General Journal Investment in equity affiliate Cash 300 300 2 2 Investment in equity affiliate Investment revenue 30 30 3 3 6 Cash Investment in equity affiliate 6 4 4 Investment revenue Investment in equity affiliate Required 1 Calculation Required 1 G Required 2 Complete the table below. (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10)). (S in millions) Investee Net Assets Ownership Interest Cost Fair Value Lake Construction's assets Book Value Lake Construction's assets Net Assets Difference Attributable to: Purchased $ 300 180 $ 120 Goodwill 160 $ 20 Undervaluation of assets 900 x 20% - 20% 800 x Years Adjustment Depreciation adjustment: Investment revenue S 10 10 11 Required 1 Calculation Required 1 GJ >

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