On July $1,2024,$ Gupta Corporation bought $25\%$ of the outstanding common stock of VB Company for $$132$ million cash, giving Gupta

the ability to exercise significant influence over VB$\text{'}$s operations. At the date of acquisition of the stock, VB$\text{'}$s net assets had a total fair

value of $$478$ million and a book value of $$252$ million. Of the $$226$ million difference, $$52$ million was attributable to the appreciated

value of inventory that was sold during the last half of $2024,$$$80$ million was attributable to buildings that had a remaining depreciable

life of $10$ years, and $$94$ million related to equipment that had a remaining depreciable life of five years. Between July $1,2024,$ and

December $31,2024,$ VB earned net income of $$68$ million and declared and paid cash dividends of $$40$ million.

Required:

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

the equity method.

Determine the amounts to be reported by Gupta.

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

Prepare all appropriate journal entries related to the investment during $2024,$ assuming Gupta 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. Do not round

intermediate calculations. Enter your answers in millions rounded to $2$ decimal places $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}50).$

$1$ Record the purchase of VB company shares for $$132\mathrm{.}0$

million.

$2$ Record the Gupta Corporation share of VB company net

income.

$3$ Record the cash dividend of $25\%$ on shares held.

$4$ Record the amortization of the differential.