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Please help! not sure what the answers are On January 4.202', Runyan Bakery paid $332 million for 10 million shares of Lavery Labeling Company common
Please help! not sure what the answers are
On January 4.202', Runyan Bakery paid $332 million for 10 million shares of Lavery Labeling Company common stock. The Investment represents a 30% interest in the net assets Of Lavery and gave Runyan the ability to exercise significant Influence over Laverys operations. Runyan mceived dividends of $4,50 per share on December 15, 2021. and Lavery reported net income Of S190 million for the year ended December 31. 2021. The market value of LaverVs common stock at December 31.2021. was $30 per share. On the purchase date. the book value of Lavery's Identifiable net assets was $840 million and: a. Tho fair value of Lavery's depreciable assets, with an overage remaining useful life Of four years. exceeded their book value by $80 b. The remainder Of the excess of the Cost o' the investment Wer the book value Of not assets purchased was attributable to goodwill. Required: I. Prepare ait appropriateJournaI entries related to the investment during 2021. assuming Runyan accounts for this investment by the 2. pre4)are the Journal entries required by Runyan, assuming that the 'O million shares represent a Interest in the net assets of Lavery rather than a 30% interest.
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