On July $1,2024,$ Gupta Corporation bought $25\%$ of the outstanding common stock of VB Company for $$120$ million cash, giving Gupta

the ability to exercise significant influence over VB$\text{'}$s operations. At the date of acquisition of the stock, VB$\text{'}$s net assets had a total fair

value of $$430$ million and a book value of $$240$ million. Of the $$190$ million difference, $$40$ 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 $$70$ 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 $$52$ million and declared and paid cash dividends of $$34$ 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.

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. Do not round

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

$5\mathrm{.}50).$

Note: Enter debits before credits.

$(1)$

Record the Gupta Corporation share of VB company net income.

Note: Enter debits before credits.

Journal entry worksheet

Record the cash dividend of $25\%$ on shares held.

Note: Enter debits before credits.

Journal entry worksheet

Record the amortization of the differential.

Note: Enter debits before credits.