On January 4, 2021, Company A paid $243 million for 7.5 million shares of Company B's common stock. The investments represented a 30% interest in the net assets of Company B and gave Company A the ability to exercise significant influence over Company B's operations. Company A received dividends of $2.00 per share on December 15, 2021, and Company B reported net income of $120 million for the year ended December 31, 2021. Company B's common stock market value on December 31, 2021, was $23 per share. On January 4 (purchase date), the book value of Company B's identifiable net assets was $600 million and:

1. The fair value of Company B's depreciable assets exceeded their book value by $60 million. The average remaining useful life was six years.
2. The remainder of the excess of the investment cost over the book value of net assets purchased was attributable to goodwill.

Complete the following. Use the Journal Entries tab for your work and only fill out the yellow cells.

1. Prepare all journal entries related to the investment during 2021. Assume Company A accounts for this investment by the equity method.
2. Prepare the journal entries required by Company A. Assume that the 10 million shares represent a 10% interest in the net assets of Company B rather than a 30% interest.