Problem 12-12 Equity method [LO12-5, 12-6 Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2016, for $520 million. At the date of purchase, the book value of Vancouver's net assets was $835 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value exceeded book value by $5 million for the inventory and by $30 million for the plant facilities. The estimated useful life of the plant facilities is 15 years. All inventory acquired was sold during 2016. Vancouver reported net income of $140 million for the year ended December 31, 2016. Vancouver paid a cash dividend of $30 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (i.e, 5,500,000 should be entered as 5.5)) View transaction list Journal entry worksheet Record the entry related to the purchase. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal 2. What amount should Northwest report as its income from its investment in Vancouver for the year ended December 31, 2016? (Enter your answer in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).) milion