On January 4, 2024, Runyan Bakery paid $332 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 $4.50 per share on December 15, 2024, and Lavery reported net income of $190 million for the year ended December 31, 2024. The market value of Lavery's common stock at December 31, 2024, was $30 per share. On the purchase date, the book value of Lavery's identifiable net assets was $840 million and: The fair value of Lavery's depreciable assets, with an average remaining useful life of four years, exceeded their book value by $80 million. 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 appropriate journal entries related to the investment during 2024, assuming Runyan accounts for this investment by the equity method. 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.

Journal entry worksheet 5 Record Runyan Bakery's share of Lavery's $190 million net income. Note: Enter debits before credits. Journal entry worksheet Record the receipt of cash dividends of $4.5 per share on 10 million shares. Note: Enter debits before credits. Journal entry worksheet Record the receipt of cash dividends of $4.5 per share on 10 million shares. Note: Enter debits before credits. Journal entry worksheet Record any necessary entry related to depreciation. The fair value of Lavery's depreciable assets, with an average remaining useful life of four years, exceeded their book value by $80 million. Note: Enter debits before credits. Journal entry worksheet 4 Record the purchase of Lavery Labeling stock for $332 million. Note: Enter debits before credits. Journal entry worksheet 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, 2024 was $30 per share. Note: Enter debits before credits. Journal entry worksheet 12 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, 2024 was $30 per share. Note: Enter debits before credits. Journal entry worksheet Record Runyan Bakery's share of Lavery's $190 million net income. Note: Enter debits before credits. Journal entry worksheet Record the purchase of Lavery Labeling stock for \$332 million. Note: Enter debits before credits