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On January 4, 2021, Runyan Bakery paid $348 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest

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On January 4, 2021, Runyan Bakery paid $348 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 $2.00 per share on December 15,2021 , and Lavery reported net income of $270 milion for the year ended December 31, 2021. The market value of Lavery's common stock at December 31,2021 , was $34 per share. On the purchase date, the book value of Lavery's identifiable net assets was $920 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 $80 milion. 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 a 30% interest. Complete this question by entering your answers in the tabs below. Prepare all appropriate journal entries related to the investment during 2021, assuming Runyan accounts for this investment by the equity method. (If no entry ts required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in milions. (1.e., 10,000,000 should be entered as 10).) Journal entry worksheet Journal entry worksheet 5 Record the purchase of Lavery Labeling stock for $348 million. Note: Enter debits before credits. Journal entry worksheet 5 Record Runyan Bakery's share of Lavery's $270 million net income. Note: Enter debits before credits. Prepare all appropriate journal entries related to the investment during 2021, assuming Runyan accounts equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first as answers in millions. (i.e., 10,000,000 should be entered as 10).) Journal entry worksheet Record the receipt of cash dividends of $2 per share on 10 million shares. Note: Enter debits before credits. Prepare all appropriate journal entries related to the investment during 2021, assuming Runyan accounts for thi equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first acc answers in millions. (i.e., 10,000,000 should be entered as 10).) Journal entry worksheet

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