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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired Distribution Transformers Corporation common stock for $530,000. Sep. 1 Acquired $1,095,000 of American Instruments' common stock. Sep. 30 Received a $15,900 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $568,000. Nov. 1 Purchased $1,530,000 of M&D Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock M&D Corporation common stock $1,032,000 $1,603,000 Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year- end. 2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive Income, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments 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 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 goodwilt. Required: 1. Prepare all appropriate journal entries related to the investment during 2021, assuming Runyan accounts for this investment by the equity method 2. Prepare the journal entries required by Runyan, assuming that the 10 million shares represent a 10% Interest in the net assets of Lavery rather than a 30% interest. 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, 2021, for $450 million At the date of purchase, the book value of Vancouver's net assets was $800 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The falr value exceeded book value by $10 million for the inventory and by $15 million for the plant facilities, The estimated useful life of the plant facilities is 12 years. All Inventory acquired was sold during 2021 Vancouver reported net income of $190 million for the year ended December 31, 2021. Vancouver paid a cash dividend of $60 million, Required: 1. Prepare all appropriate journal entries related to the investment during 2021 2. What amount should Northwest report as its income from its investment in Vancouver for the year ended December 31, 2021? 3. What amount should Northwest report in its balance sheet as its investment in Vancouver? 4. What should Northwest report in its statement of cash flows regarding its investment in Vancouver