On January $02,2021,$ Dixon Inc. bought $25\%$ of the outstanding common stock of Sea Construction Company for $$250$ million cash giving Dixon the ability to exercise significant

influence over Sea's operations. At the date of acquisition of the stock, Sea's Construction net assets had a fair value of $$950$ million. Its book value was $$800$ million. The

difference is allocated to the fair value of equipment, buildings, and land. While fair values of equipment and buildings are $$50$ million and $$75$ million, respectively, the fair value

of land is $$25$ million. Equipment and buildings are depreciated using straight$-$line method. Equipment has a remaining depreciable life of $5$ years while the depreciable life of

buildings is $10$ years. Sea's net income for the year ended December $31,2021,$ was $$120$ million. During $2021,$ Sea Construction declared and paid cash dividends of $$25$ million.

Required:

Prepare all appropriate journal entries related to the investment during $2021,$ assuming Dixon Inc. accounts for this investment by the equity method.

Determine the amounts to be reported by Dixon:

As an investment in Dixon's $2021$ balance sheet.

As net investment revenue in the income statement $(30$ pts$.)$