On July $1,2024,$ Gupta Corporation bought $25\%$ of the outstanding common stock of VB Company for $$134$ million cash, giving Gupta the ability to exercise significant influence over VB$$s operations. At the date of acquisition of the stock, VB$$s net assets had a total fair value of $$486$ million and a book value of $$254$ million. Of the $$232$ million difference, $$54$ million was attributable to the appreciated value of inventory that was sold during the last half of $2024,$ $$80$ million was attributable to buildings that had a remaining depreciable life of $10$ years, and $$98$ million related to equipment that had a remaining depreciable life of five years. Between July $1,2024,$ and December $31,2024,$ VB earned net income of $$70$ million and declared and paid cash dividends of $$41$ million. Complete this question by entering your answers in the tabs below.

Required $1$

Determine the amounts to be reported by Gupta.

Note: Amounts to be deducted, including losses and cash outflows, should be indicated with a minus sign. D Assessment Tool iFrame

intermediate calculations. Enter your answers in millions rounded to $2$ decimal places $($i$.$e$.,5,500,000$ should be entered as

$5\mathrm{.}50$

Required:

Prepare all appropriate journal entries related to the investment during $2024,$ assuming Gupta accounts for this investment by the equity method.

Determine the amounts to be reported by Gupta.