On January 1, 2024, Joey Co. acquired 300,000 shares, which represents 30% of Legoria CO.'s voting shares, by paying $50 per share for a total of $15,000,000 Cash. Joey Co. has significant influence over Legoria Co., and therefore the Equity Method of accounting is appropriate GAAP. On the date acquisition, Legoria Co.'s net book value is $30 Million. An analysis of Legoria's assets and liabilities indicates that plant and equipment (10-year life) is reported at $1 million less than fair value and that Legoria has unreported technology (5-year life) valued at $5 million. Legoria Co. reports net income of $3 Million for the year ended 12/31/2024. It declares a dividend of $0.60 per share on 11/1/2024 and pays the dividend on 12/1/2024.

In addition, during 2024 Legoria Co. sells inventory to Joey Co. (upstream) at an average markup of 25 percent on cost. Joey Co. still holds $300,000 of this inventory at year-end 2024. Also, during 2024, Joey Co sells inventory to Legoria Co. (downstream) at an average markup of 40 percent on cost. Legoria Co. holds $280,000 of this inventory at year-end.

1. Give the Journal Entries on Joey Co's Books for 2024 related to its Investment in Legoria Co. using the Equity Method.
2. What is the amount of the Differential allocated to Goodwill?
3. What would be reported on Joey Co.'s Balance sheet and Income Statement for its Equity Method Investment in Legoria?