On July $1,2024,$ Gupta Corporation bought $25\%$ of the outstanding common stock of VB Company for $$128$ million cash, giving Gupta the ability to exercise significant influence over VB$\text{'}$s operations. At the date of acculsition of the stock, VB$\text{'}$s net assets had a total fair value of $$462$ million and a book value of $$248$ million. Of the $$214$ million difference, $$48$ million was attributable to the appreciated value of inventory that was sold during the last half of $2024,$$$80$ million was attributable to buildings that had a remaining depreciable life of $10$ years, and $$86$ million related to equipment that had a remaining depreciable life of five years. Between July $1,2024,$ and December $31,2024,$ VB earned net income of $$64$ million and declared and paid cash dividends of $$38$ million.

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.

Complete this question by entering your answers in the tabs below.

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

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $2$ decimal places $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}50).$

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Journal entry worksheet

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Record the amortization of the differential.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[4,$Investment revenue,,$],[,$Investment in equity affiliate,,$],[,,,],[,,,]]$