Question: I'm not sure what I did wrong? Problem 12-11 Fair value option; equity method investments (LO12-5, 12-8] On January 4, 2018, Runyan Bakery paid $364

 I'm not sure what I did wrong? Problem 12-11 Fair value

I'm not sure what I did wrong?

Problem 12-11 Fair value option; equity method investments (LO12-5, 12-8] On January 4, 2018, Runyan Bakery paid $364 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 $350 million for the year ended December 31, 2018. The market value of Lavery's common stock at December 31, 2018, was $33 per share. On the purchase date, the book value of Lavery's net assets was $790 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 $100 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: 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 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).) View transaction list View journal entry worksheet No Event General Journal Debit Credit 364 Investment in Lavery Labeling shares Cash 364 2 2 105 Investment in Lavery Labeling shares Cash 3 Cash Dividend revenue Unrealized holding gainOCI Fair value adjustment 5 5 No journal entry required

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