On Jaruary $4.2024,$ Runyan Bakery paid $$340$ milion for $90$ milion shares of Lavery Labeling Compsny commen stock. The

investment represents a $30$A interest in the net assets of Lavery and gove Runyan the ability to exercise significant influence over

Lavery's operatlans. Runyan recelved diddends of $$260$ per share on December $15,2024,$ and Lavery reported net income of $$230$

milion far the year ended December $31,2024.$ The market value af Laverys common stock at December $31,2024,$ was $$32$ per share

On the purchase date, the book value of Lavery's identisble net assets was $$890$ milion and:

a$.$ The fair value of Lavery's depreciable ascets, with an average remaining useful life of four years, exceded their book value by

$$120$ million

b$.$ The remainder of the excess of the cost of the irwestment over the book value of net assets purchased was antreutabie ts

goodwil

Required:

Prepare all approprlate joumal entries related to the investment during $2024.$ assuming Rumyan accounts for this investment by

the equity method

Prepare the joumal entries reguired by Runyan, assuming that the $10$ million shares represent a $10$ s interest in the net astets of

Lavery rather than a $30\%$ interest.

sherw less.

rather than is kigh ingertert.

Journal entry worksheet