On January $4,2024,$ Runyan Bakery paid $$336$ 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 $$2\mathrm{.}50$ per share

on December $15,2024,$ and Lavery reported net income of $$210$ million for the year ended December $31,2024.$ The market value of

Lavery's common stock at December $31,2024,$ was $$32$ per share. On the purchase date, the book value of Lavery's identifiable net

assets was $$860$ 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.

Note: 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 $10).$

$1$ Record the purchase of Lavery Labeling stock for $$336$

million.

$2$ Record Runyan Bakery's share of Lavery's $$210$ million

net income.

$3$ Record the receipt of cash dividends of $$2\mathrm{.}5$ per share on

$10$ million shares.

$4$ Record any necessary adjusting entry to correctly report

the investment on the balance sheet. The market value

of Lavery's common stock at December $31,2024$ was

$$32$ per share.