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 VBs operations. At the date of acquisition of the stock, VBs net assets had a total fair value of $360 million and a book value of $200 million. Of the $160 million difference, $20 million was attributable to the appreciated value of inventory that was sold during the last half of 2021, $120 million was attributable to buildings that had a remaining depreciable life of 10 years, and $20 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 $32 million and declared and paid cash dividends of $24 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.