Required: 1. Prepare all appropriate journal entries related to the investment during 2018, 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 2.24 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Print Prepare all appropriate journal entries related to the investment during 2018, assuming Runyan accounts for this investment by the equity method. (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).) References View transaction list View journal entry worksheet No Event Credit Debit 352 1 General Journal Investment in Lavery Labeling shares Cash 1 352 22 Investment in Lavery Labeling shares Investment revenue Investment in Lavery Labeling shares Dividend revenue Investment in Lavery Labeling shares Accumulated depreciation 5 5 No journal entry required Required 1 Required 2 > Problem 12-10 Investment securities and equity method investments compared [LO12-6, 12-7] On January 4, 2018, Runyan Bakery paid $352 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, 2018, and Lavery reported net income of $290 million for the year ended December 31, 2018. The market value of Lavery's common stock at December 31, 2018, was $34 per share On the purchase date, the book value of Lavery's net assets was $940 million and a. The fair value of Lavery's depreciable assets, with an average remaining useful life of nine years, exceeded their book value by $90 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: 1. Prepare all appropriate journal entries related to the investment during 2018, 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 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. (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).) Credit No 1 Event 1 General Journal Investment in Lavery Labeling shares Cash Debit 352 / 352 2 No journal entry required