On July 1, 2021, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $125 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 $420 million and a book value of $220 million Of the $200 million difference, $26 million was attributable to the appreciated value of inventory that was sold during the last half of 2021, $128 million was attributable to buildings that had a remaining depreciable life of 10 years, and 546 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 $48 million and declared and paid cash dividends of $40 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. 4 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare all appropriate journal entries related to the investment during 2021, assuming Gupta accounts for this investment by the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 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).) Show less A General Journal No Transaction 1 1 Investment in equity affiliate Cash 2 2 Investment in equity affiliate Investment revenue 3 3 Cash Investment in equity affiliate Investment revenue Investment in equity affiliate Required 2 > 00 00 00 Debit Credit 125.00 125.00 12.00 12.00 10.00 10.00 Required 1 Required 2 Prepare all appropriate journal entries related to the investment dur method. (If no entry is required for a transaction/event, select "No intermediate calculations. Enter your answers in millions rounded to View transaction list View journal entry worksheet 1 Record the purchase of VB company shares for $125.0 million. 2 Record the Gupta Corporation share of VB company net income. Record the cash dividend of 25% on shares held. Record the amortization of the differential. Required 1 Required 2 Determine the amounts to be reported by Gupta. (Amounts to be deducted, including losses and cash outflows, should be indicated with a minus sign. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (ue, 5,500,000 should be entered as 5.50).) a Investment in Gupta's December 31, 2021, balance sheet b. Investment revenue (loss) in Gupta's 2021 income statement Investing activities in Gupta's 2021 statement of cash flows ($ in millions)