Problem 12-11 (Algo) Fair value option; equity method investments [LO12-5, 12-8] On January 4, 2021, Runyan Bakery paid $338 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 Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $2.00 per share on December 15, 2021, and Lavery reported net income of $220 million for the year ended December 31, 2021. The market value of Lavery's common stock at December 31, 2021, was $33 per share. On the purchase date, the book value of Lavery's identifiable net assets was $870 million and: a. The fair value of Lavery's depreciable assets, with an average remaining useful life of five years, exceeded their book value by $50 million. b. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: Assuming Runyan accounts for this investment under the fair value option, prepare all appropriate journal entries in a manner similar to accounting for securities for which there is not significant influence. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).) View transaction list View transaction list * 1 Record the purchase of Lavery Labeling stock for $338 million. 2 Record Runyan Bakery's share of Lavery's $220 million net income. 3 Record the receipt of cash dividends of $2 per share on 10 million shares. 4 Record any necessary adjusting entry to correctly report the investment on the balance sheet. The market value of Lavery's common stock at December 31, 2021 was $33 per share. Note : = journal entry has been entered