On July 1, 2018, Gupta Corporation bought 20% of the outstanding common stock of VB Company for $110 million cash. At the date of acquisition of the stock, VBs net assets had a total fair value of $500 million and a book value of $290 million. Of the $210 million difference, $46 million was attributable to the appreciated value of inventory that was sold during the last half of 2018, $130 million was attributable to buildings that had a remaining depreciable life of 10 years, and $34 million related to equipment that had a remaining depreciable life of 5 years. Between July 1, 2018, and December 31, 2018, VB earned net income of $60 million and declared and paid cash dividends of $40 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2018, assuming Gupta accounts for this investment by the equity method. 2. Determine the amounts to be reported by Gupta.