Tranaction List:

1) Record the purchasing of Lavery Labeling stock for $360 million

2) Record Runyan's Bakery sale of $330 million in net income

3) Record the receipt of cash dividends of $4.5 per share on 10 million shares

4) Record any neccesary entries related to depreciation. The fair value of Lavery's depreciable assets, with an average remaining useful life of six years, exceeded their book value by $80 million.

5) 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, 2018 was $32 per share.

On January 4, 2018, Runyan Bakery paid $360 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 $4.50 per share on December 15, 2018, and Lavery reported net income of $330 million for the year ended December 31, 2018. The market value of Lavery's common stock at December 31, 2018, was $32 per share. On the purchase date, the book value of Lavery's net assets was $980 millon and: a. The fair value of Lavery's depreciable assets, with an average remaining useful life of six years, exceeded their book value by $80 aTheei e ences ofthe cost of the nvestment overthe book value of net essets purchsed was atributaie to goodvil 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 requlred for a transactlon/event, select "No journal entry requlred" In the first account field. Enter your answers In milillons. (l.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet Record the purchase of Lavery Labeling stock for $360 million. Note: Enter debits berore credits Debit Credit General Journal Event Record entry Clear entry View general journal