On July 1, 2024, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $100 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 $350 million and a book value of $220 million. Of the $130 million difference, $20 million was attributable to the appreciated value of inventory that was sold during the last half of 2024, $80 million was attributable to buildings that had a remaining depreciable life of 10 years, and $30 million related to equipment that had a remaining depreciable life of five years. Between July 1, 2024, and December 31, 2024, 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 2024, assuming Gupta accounts for this investment by the equity method.

2. Determine the amounts to be reported by Gupta.

Complete this question by entering your answers in the tabs below. Prepare all appropriate journal entries related to the investment during 2024, assuming Gupta accounts for this investment by the equity method. Note: 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). Journal entry worksheet Record the purchase of VB company shares for $100 million. Note: Enter debits before credits. Journal entry worksheet Record the Gupta Corporation share of VB company net income. Note: Enter debits before credits. Journal entry worksheet Record the amortization of the differential. Note: Enter debits before credits. Determine the amounts to be reported by Gupta. Note: 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). Complete this question by entering your answers in the tabs below. Prepare all appropriate journal entries related to the investment during 2024, assuming Gupta accounts for this investment by the equity method. Note: 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). Journal entry worksheet Record the purchase of VB company shares for $100 million. Note: Enter debits before credits. Journal entry worksheet Record the Gupta Corporation share of VB company net income. Note: Enter debits before credits. Journal entry worksheet Record the amortization of the differential. Note: Enter debits before credits. Determine the amounts to be reported by Gupta. Note: 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)