On January $4,2024,$ Runyan Bakery paid $$338$ million for $10$ million shares of Lavery Labeling Company common stock. The $1$ Record the purchase of Lavery Labeling stock for $$338$

million.

$2$ Record Runyan Bakery's share of Lavery's $$220$ million

net income.

$3$ Record the receipt of cash dividends of $$2$ per share on

$10$ million shares.

$4$ Record any necessary entry related to depreciation. The

fair value of Lavery's depreciable assets, with an average

remaining useful life of five years, exceeded their book

value by $$50$ million.

$5$ 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

$$33$ per share. Required $1$

Prepare the journal entries required by Runyan, assuming that the $10$ million shares represent a $10\%$ interest in the net assets of Lavery

rather than a $30\%$ interest.

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 $10).$

Journal entry worksheet

Record the purchase of Lavery Labeling stock for $$338$ million.

Note: Enter debits before credits. $1$ Record the purchase of Lavery Labeling stock for $$338$

million.

$2$ Record Runyan Bakery's share of Lavery's $$220$ million

net income.

$3$ Record the receipt of cash dividends of $$2$ 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

$$33$ per share.

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 received dividends of $$2\mathrm{.}00$ per share on December $15,2024,$ and Lavery reported net income of $$220$

million for the year ended December $31,2024.$ The market value of Lavery's common stock at December $31,2024,$ was $$33$ per share.

On the purchase date, the book value of Lavery's identifiable net assets was $$870$ 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

$$50$ 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:

Prepare all appropriate journal entries related to the investment during $2024,$ assuming Runyan accounts for this investment by

the equity method.

Prepare the journal entries required by Runyan, assuming that the $10$ million shares represent a $10\%$ interest in the net assets of

Lavery rather than a $30\%$ interest.

Complete this question by entering your answers in the tabs below.

Prepare all appropriate journal entries related to the investment during $2024,$ assuming Runyan accounts for this investment by the

equity method.

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 $10).$

Journal entry worksheet

Record the purchase of Lavery Labeling stock for $$338$ million.

Note: Enter debits before credits.