On January 4, 2024, Runyan Bokery paid $364 million for 10 million shares of Lavery Labeling Company common stock. The inventment represents a 30% interest in the net assets of Lavery and gave Runyan the obility to exetcise significant influence over Lovery's operations. Runyan chose the fair volue option to occount for this investment. Runyan recelved dividends of $4.5 per share on December 15,2024 , and Lavery reported net income of $350milion for the yeor ended December 31,2024 . The market value of Lavery's common stock at December 31,2024 , was $.33 per share. On the purchase dote, the book volue of Lavery's identifiable net assets was $1,000 million and a. The fair value of Lavery's depreclable ossets, with an averoge remaining useful life of five years, exceeded their book value by $100 million b. The remainder of the excess of the cost of the investment over the book value of net assets purchased wos attributoble to goodwill. Required: 1-a. Prepare all appropriate journal entries reloted to the investment during 2024, ossuming Runyan accounts for this investment under the fair value option, and accounts for the Lovery investment in a manner similar to what if would use for securities for which there is not significant influence. 1-b. Calculate the effect of these journal entries on 2024 net income, and the omount at which the investment is carried in the December 31,2024 , balance sheet. 2-a. Prepare all appropriate journal entries related to the investment during 2024, assuming Runyan accounts for this investment under the fair value option, but uses equity method accounting to account for Lavery's income and dividends, and then records a fair value adjustment at the end of the year that allows it to comply with GAAP. 2-b. Calculate the effect of these journal entries on 2024 net income, and the amount at which the investment is carried in the December 31,2024, balance sheet. (Note: You should end up with the same total 2024 income effect and same carrylng value on the salance sheet for requirements 1 and 2 .) View transaction list View joumal entry worksheet \begin{tabular}{|c|c|c|c|c|c|} \hline & No & Transaction & General Journal & Debit & Credit \\ \hline \multirow[t]{2}{*}{7} & 1 & 1 & Cash & 364 & \\ \hline & & & Investment in equity securities & & 364 \\ \hline \multirow[t]{2}{*}{>} & 2 & 2 & Investment in equity securities & 105 & \\ \hline & & & Investment revenue & & 105 \\ \hline \multirow[t]{2}{*}{