On January $4,2021,$ Runyan Bakery pald $$330$ million for $10$ million shares of Lavery Labeling Company common stock. The

Investment represents a $30\%$ interest in the net assets of Lavery and gave Runyan the abllity to exercise significant

Influence over Lavery's operations. Runyan recelved dividends of $$3\mathrm{.}00$ per share on December $15,2021,$ and Lavery

reported net income of $$180$ million for the year ended December $31,2021.$ The market value of Lavery's common stock at

December $31,2021,$ was $$31$ per share. On the purchase date, the book value of Lavery's identifiable net assets was $$830$

million and:

a$.$ The falr value of Lavery's depreclable assets, with an average remalning useful life of seven years, exceeded thelr book

value by $$70$ million.

b$.$ The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable

to goodwill.

Required:

Prepare all approprlate journal entrles related to the Investment during $2021,$ assuming Runyan accounts for this

Investment by the equity method.

Prepare the journal entrles required by Runyan, assuming that the $10$ million shares represent a $10\%$ interest in the net

assets of Lavery rather than a $30\%$ interest.