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

$$136$ 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 $$494$ million and a book value of

$$256$ million. Of the $$238$ million difference, $$56$ 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 $$102$ 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

$$72$ million and declared and paid cash dividends of $$42$ 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.

Required $1$

Required $2$

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 I

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

$5\mathrm{.}50).$