er 12 - Homework Help Save & Ext Check 2 Exercise 12-23 (Algo) Equity method [LO12-6, 12-7) OR:03 On January 1, 2021, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $340 million cash. giving Cameron the ability to exercise significant influence over Lake's operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Its book value was $850 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended December 31, 2021, was $270 million. During 2021, Lake declared and paid cash dividends of $30 million. The buildings have a remaining life of 5 years. Required: 1. Complete the table below and prepare all appropriate Journal entries related to the investment during 2021, assuming Cameron accounts for this investment by the equity method. 2. Determine the amounts to be reported by Cameron. Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G Required 2 Complete the table below. (Enter your answers in millions, (.e. 10,000,000 should be entered as 10)). Is in millions) Investee Net Assets Ownership Interest Net Assets Purchased Difference Attributable to: $ 340 Cost Fair Value Lake Construction's assets Book Value Lake Construction's assets 0 % % $ $ 0 Year Adjustment Depreciation adjustment: Investment revenue Regured 10 > Calculation Required 1 GJ Required 2 Prepare all appropriate journal entries related to the Investment during 2021, assuming Cameron accounts for this investmer equity method. (If no entry is required for a translor/event, select "No joumal entry required" In the first account held. Er answers in millions, (I.e., 10,000,000 should be en ered as 10).) View transaction list Journal entry worksheet 2 3 4 > Record the investment in Lake Construction shares. Note: Enter debits before credits General Journal Debit Credit Transaction View general journal Record entry clear entry 18 Next > Journal entry worksheet 1 2009 3 > Record the investor's share of net income. Note: Enter debits before credits Transaction General Joumal Debit Credit 2 ces Record entry Clear entry View general journal MacBook Air View transaction list ook Journal entry worksheet 2 22 4 Record the cash dividends. Note: Enter debits before credits. Transaction General Journal Debit Credit 3 exces Record entry Clear entry View general journal Prev 9 of 18 Next Journal entry worksheet 1 2 3 Record the adjustment for depreciation. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal