On July 1, 2018, Gupta Corporation bought 30% of the outstanding common stock of VB Company for $170 million cash. At the date of acquisition of the stock, VBs net assets had a total fair value of $490 million and a book value of $220 million. Of the $270 million difference, $50 million was attributable to the appreciated value of inventory that was sold during the last half of 2018, $160 million was attributable to buildings that had a remaining depreciable life of 10 years, and $60 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 $50 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. (amounts in millions)

	Journal	Debit	Credit
1	Investment in VB Shares	170m
	Cash		170m
2	Investment in VB Shares	???
	Investment Revenue		???
3.	Cash	15m
	Investment in VB Shares		15m
4	Investment Revenue	???
	Investment in VB Shares		???

a Investment in Gupta's balance sheet
b. investment revenue (loss) in Gupta's 2018 income statement
c. investing activities in Gupta's 2018 statement of cash flows