On January 4, 2021, Runyan Bakery paid $340 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 $2.60 per share on December 15, 2021, and Lavery reported net income of $230 million for the year ended December 31, 2021. The market value of Lavery's common stock at December 31, 2021, was $32 per share. On the purchase date, the book value of Lavery's identifiable net assets was $880 million and a. The fair value of Lavery's depreciable assets, with an average remaining useful life of four years, exceeded their book value by $120 b. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. million 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 joumal entries required by Runyan, assuming that the 10 milion shares represent a 10% Interest in the net assets of Lavery rather than a 30% interest Cenlete the ninetine heat Journal entry worksheet 1 2 3 4 5 > Record the purchase of Lavery Labeling stock for $340 million. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Investment in equity affiliate Cash 340 340 Journal entry worksheet 1 4 5 Record Runyan Bakery's share of Lavery's $230 million net income. Note: Enter debits before credits Transaction General Joumal Debit Credit 2 Gain on investment (NI) Investment revenue Record entry Candy View general journal Journal entry worksheet 1 2 3 4 5 Record the receipt of cash dividends of $2.6 per share on 10 million shares. Note: Enter debits before credits Transaction General Journal Debit Credit 3 Cash Interest revenue 26 26 Record entry CY View gennai journal tion list Journal entry worksheet Record the purchase of Lavery Labeling stock for $340 million. Note: Enter debits before credits. Transaction Debit Credit 1 General Joumal Investment in equity securities Cash 340 ht 340 BAL Journal entry worksheet 1 2 3 Record Runyan Bakery's share of Lavery's $230 million net income. Note: Enter debits before credits. General Journal Transaction 2 Debit Credit Cash Dividend revenue 230 230