On January 4, 2021. Runyan Bakery paid $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 ability to exercise significant influence over Lavery's operations Runyan received dividends of $3.00 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 fair value of Lavery's depreciable assets, with an average remaining useful life of seven years, exceeded their book value by 570 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: 1. Prepare all appropriate journal entries related to the investment during 2021, assuming Runyan accounts for this investment by the equity method 2. Prepare the journal entries required by Runyan, assuming that the 10 million shares represent a 10% interest in the net assets of Lavery rather than o 30% interest Required 1 Required 2 Prepare all appropriate journal entries related to the investment during 2021, assuming Runyan 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. (.e. 10,000,000 should be entered as 10).) No Transaction General Journal Debit Credit Investment in equity affiliate 330 Cash 330 1 2 2 No journal entry required 3 3 30 Cash Investment revenue 30 4 4 No journal entry required 5 5 Loss on investment (unrealized, NI) 3 20 20 Required 2 Required 1 Requireil 2 Prepare the journal entries required by Runyan, assuming that the 10 million shares represent a 10% interest in the net assets of Lavery rather than a 30% interest. (if no entry is required for a transaction/event, select "No journal entry require in the first account field. Enter your answers in millions. (l.e., 10,000,000 should be entered as 10).) No Transaction General Journal Debit Credit Investment in equity securities 330 Cash 330 1 2 2 Investment in equity securities Investment revenue 54 543 3 3 30 Cash Investment in equity securities 30 4 4 No journal entry required Record the receipt of cash dividends of $3 per share on 10 million shares. Note: Enter debits before credits. Transaction 3 Debit Credit General Journal Cash Investment revenue 30 30 Record entry Clear entry View general journal 2 3 4 ch 5 Record any necessary entry related to depreciation. The fair value of Lavery's depreciable assets, with an average remaining useful life of seven years, exceeded their book value by $70 million. Note: Enter debits before credits. Transaction 4 Debit General Journal No journal entry required Credit Record entry Clear entry View general journal try is required for a transaction/event, select "No journal entry required" in the first answers in millions. (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet 1 2 3 4 Record any necessary adjusting entry to correctly report the investment on the balance sheet. The market value of Lavery's common stock at December 31, 2021 was $31 per share. Note: Enter debits before credits. Transaction General Journal Loss on investment (unrealized, NI) Debit Credit 5 20 20 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 Record the purchase of Lavery Labeling stock for $330 million. Note: Enter debits before credits. Transaction Credit 1 General Journal Investment in equity securities Cash Debit 330 330 Record entry Clear entry View general journal