On July 1, 2021, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $110 million cash, giving Gupta the ability to exercise significant influence over VB's operations. At the date of acquisition of the stock, VB's net assets had a total fair value of $360 million and a book value of $240 million. Of the $120 million difference, $22 million was attributable to the appreciated value of inventory that was sold during the last half of 2021, $84 million was attributable to buildings that had a remaining depreciable life of 15 years, and $14 million related to equipment that had a remaining depreciable life of 5 years. Between July 1, 2021, and December 31, 2021, VB earned net income of $24 million and declared and paid cash dividends of $16 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2021, assuming Gupta accounts for this investment by the equity method. 2. Determine the amounts to be reported by Gupta. Journal entry worksheet Record the purchase of VB company shares for $110.0 million. Note: Enter debits before credits. Transaction General Journal Credit Debit 110.00 Investment in equity affiliate Cash 110.00 Journal entry worksheet Record the Gupta Corporation share of VB company net income. Note: Enter debits before credits. Transaction Credit General Journal Investment in equity affiliate Investment revenue Debit 6.00 6.00 Journal entry worksheet TO @ 30 Record the cash dividend of 25% on shares held. Note: Enter debits before credits. Transaction Debit Credit General Journal Cash Investment in equity affiliate 4.00 4.00 Journal entry worksheet Record the amortization of the differential. Note: Enter debits before credits. Transaction General Journal Debit Credit Investment revenue Investment in equity affiliate Required 1 Required 2 Determine the amounts to be reported by Gupta. (Amounts to be deducted, including losses and cash outflows, should be indicated with a minus sign. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) ($ in millions) a. Investment in Gupta's December 31, 2021, balance sheet b. Investment revenue (loss) in Gupta's 2021 income statement c. Investing activities in Gupta's 2021 statement of cash flows