On July 1, 2024, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $118 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 $422 million and a book value of $238 million. Of the $184 million difference, $38 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 $66 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 $50 million and declared and paid cash dividends of $33 million. Required: Prepare all appropriate journal entries related to the investment during 2024, assuming Gupta accounts for this investment by the equity method. Determine the amounts to be reported by Gupta.

Journal entry worksheet Record the purchase of VB company shares for $118.0 million. Note: Enter debits before credits. Journal entry worksheet Record the purchase of VB company shares for $118.0 million. Note: Enter debits before credits