You are a staff accountant in the corporate controller's office at Gamma Ten Corporation, an energy exploration and extraction company. Gamma Ten reports the following: Gamma Ten Corporation Income Statement for the year ended December 31, 2022 ($ millions) Sales revenue Cost of goods sold Gross profit General and administrative expenses Other revenues, expenses and losses: Income from operations Interest expense Losses from disposals of fixed assets Income from equity method investment Losses from nationalization of foreign assets Income before income taxes Income tax expense: $ 2,499.5 2,100.9 398.6 51.9 346.7 (55.4) (9.9) 1.1 (137.4) 145.1 Current Deferred Net income Note the following: 8.8 29.3 38.1 $ 107.0 Gamma Ten's cost accounting system collects many personnel and facility charges into cost of goods sold. Cost of goods sold includes $142.5 of depreciation and depletion charges, $20.3 million of amortization charges on limited life intangible assets, and $1.1 million of pension expense. General and administrative expenses includes $4.9 million of depreciation charges and $0.3 million of pension expense. Losses from disposals of fixed assets includes $9.2 million of losses incurred in various transactions when Gamma Ten sold assets with $36.1 million of book value for $26.9 million in cash. The remaining $0.7 million resulted from the exchange of land to settle an asset retirement obligation (see below). Gamma Ten declared and paid $59.0 million of common dividends in 2022. Gamma Ten Corporation Balance Sheet as of December 31, ($ millions) Cash Accounts receivable, net 2022 $ 200.8 523.4 2021 $ 233.7 503.6 Inventories 302.8 239.6 Other current assets 88.1 100.8 Total current assets 1,115.1 1,077.7 Property, plant, and equipment, net of accumulated depreciation and depletion 1,896.1 1,852.1 Equity method investment 8.4 Deferred income taxes 138.4 Intangible assets 166.1 167.7 186.4 Total assets $3.324.1 $ 3.283.9 Accounts payable $ 301.8 $ 255.4 Accrued employee compensation and benefits 71.4 74.6 Income taxes payable 24.8 23.1 Current maturities of long term debt 3.6 51.2 Other current liabilities 78.6 81.9 Total current liabilities Long term debt 480.2 1,042.1 486.2 1,043.0 Net pension liability 58.3 60.9 Total liabilities 1,580.6 1,590.1 Common stock, $2 par value 267.1 267.1 Additional paid-in capital 21.1 20.7 Retained earnings 2,129.7 2,081.7 Treasury stock, at cost (674.4) (675.7) Total shareholders' equity 1,743.5 1,693.8 Total liabilities and shareholders' equity $ 3.324.1 $ 3.283.9 Note the following: Gamma Ten paid $597.5 million in cash to purchase property, plant and equipment assets during 2022. Gamma Ten paid $51.2 million to retire long term debt in 2022, and borrowed $2.6 million in new debt on long term notes. Gamma Ten contributed $4.0 million cash into its pension fund in 2022. There are no OCI or accumulated OCI balances relating to the pension plan. The only stock transaction in 2022 occurred when Gamma Ten exchanged common stock from the treasury for property, plant and equipment assets with a fair value of $1.7 million. You have been assigned the task of drafting the statement of cash flows for 2022. Information has been provided to you about the following transactions. Nationalization of foreign investments In August of 2022, a mining operation in an overseas territory was nationalized by the local government. Gamma Ten had insurance against such an event, and recorded the following upon settlement of the claim: Accumulated depreciation Cash 300,000,000 79,400,000 Unusual loss - forfeiture of foreign assets 137,400,000 Land 68,000,000 Buildings and equipment 97,400,000 Natural resources-mineral deposit 283,000,000 68,400,000 Inventory The amount of the insurance settlement was determined as follows, based on fair values of the assets forfeited: Land Buildings and equipment $ 10,000,000 30,000,000 170,000,000 90,000,000 $300,000,000 Natural resources Inventory Total Joint Venture On February 28, 2022, Gamma Ten made an investment in a shale oil joint venture. A 33.33% ownership stake in the joint venture was purchased for $8.8 million, and the investment was recorded as an equity method investment. The following was recorded at the time of the investment: Equity method investment Cash 8,800,000 8,800,000 For the year, the joint venture reported $3.3 million of net income, and paid $4.5 million in dividends. Since the joint venture has a single purpose to extract resources from a single natural resource deposit (at the conclusion of which, the company will be liquidated), all dividends are treated as returns of investment (not returns on investment). Gamma Ten records the following for its ownership in the joint venture for 2022: Cash 1,500,000 Income from equity method investment Equity method investment 1,100,000 400,000 Asset Retirement Obligation Gamma Ten owned land with a book value of $2.7 million. On the land is a coal deposit, now fully depleted, and Gamma Ten also had a properly recorded asset retirement obligation of $4 million (included in "Other current liabilities" at the end of 2021) for the work required to restore the land after the completion of mining. In April, 2022, GMI Environmental Solutions, Inc. was contracted to perform the cleanup work for $4 million. GMI agreed to accept in payment $2 million in cash and ownership of the land after the work was completed. The following was recorded: Asset retirement obligation Loss on disposal of land Land Cash 4,000,000 700,000 2,700,000 2,000,000 Instructions: You are required to prepare a draft of a statement of cash flows for 2022, with all required disclosures, for your supervisor's review. You are also required to support your treatment of the three items shown above (nationalization of foreign assets, the joint venture, and the asset retirement obligation) via research in the GAAP Codification database, and to summarize the results of that research in a memorandum attached to your statement of cash flows draft. The memorandum should include quotes of relevant guidance, as well as citations of the numbered sections from which they came. Note well, that while treatment of equity method investments is in Chapter 23 of Kieso, you still need to research this in the codification (and Kieso would probably lead you to a wrong answer anyway)