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 $46 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. * Answer is not complete. 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).) No Transaction General Journal 1 1 Investment in equity affiliate Cash 2 2 Investment in equity affiliate 3 3 Investment revenue Cash Investment in equity affiliate 4 4 Investment revenue Investment in equity affiliate < Required 1 Required 2 > Debit Credit 125.00 125.00 12.00 12.00 10.00 10.00 14.50 14.50 x