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On January 1, 2021, Kevin Inc. bought 30% of the outstanding common stock of Sachs Construction Company for $330 million cash, giving Kevin the ability

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On January 1, 2021, Kevin Inc. bought 30% of the outstanding common stock of Sachs Construction Company for $330 million cash, giving Kevin the ability to exercise significant influence over Sachs' operations. At the date of acquisition of the stock, Sachs' net assets had a fair value of $700 million. Its book value was $600 million. The difference was attributable to the fair value of Sachs' buildings and Its land exceeding book value, each accounting for one-half of the difference. Sachs' net income for the year ended December 31, 2021, was $110 million. During 2021, Sachs 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 Kevin accounts for this investment by the equity method. 2. Determine the amounts to be reported by Kevin. Complete this question by entering your answers in the tabs below. 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 Net Assets Purchased Difference Attributable to: $ 330 Cost Fair Value Sachs' assets Book Value Sachs' assets % Years Adjustment Depreciation adjustment: Investment revenue 177 Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G Required 2 Prepare all appropriate journal entries related to the investment during 2021, assuming Kevin accounts for this investment by the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (I.e., 10,000,000 should be entered as 10).) View transaction list 1 Record the investment in Lake Construction shares. 2 Record the investor's share of net income. 3 Record the cash dividends. 4 Record the adjustment for depreciation. Credit Required: 1. Complete the table below and prepare all appropriate Journal entries related to the Investment during 2021, assuming Kevin accounts for this investment by the equity method. 2. Determine the amounts to be reported by Kevin. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Determine the amounts to be reported by Kevin. (Amounts to be deducted, including losses and cash outflows, should be Indicated with a minus sign. Enter your answers in millions, (1.e., 10,000,000 should be entered as 10).) ($ in millions) a. Investment in Kevin's 2021 balance sheet b. Investment revenue in the income statement C. Investing activities in the statement of cash flows

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