1A here & above

1B

2b

On January 4, 2024, Runyan Bakery paid $338 million for 10 millon 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 recelved dividends of $2 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 milion 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 milition b. The remaindet of the excess of the cost of the investment over the book yalue of net assets purchased was attributable to goodwill. Required: 1.o. Prepare all appropriate journal entries related to the investment during 2024, assuming Runyan accounts for this investment under the fair value option, and accounts for the Lavery investment in a manner similar to what it would use for securities for which there is not significant influence. 1-b. Calculate the effect of these journal entries on 2024 net income, and the amount at which the investment is carried in the December 31,2024 , balance sheet. 2-. Prepare all appropilate journal entries related to the investment during 2024, assuming Runyan accounts forthis investment under the fair value option, but uses equity method accounting to account for Lavery's income and dividends, and then tecords a fair value adjustment at the end of the year that allows it to comply with GAAP. 2-b. Calculate the effect of these journal enties on 2024 net income, and the amount at which the investment is carried in the December 31, 2024. balance sheet. (Note: You should end up with the same total 2024 income effect and same carrying value on the balance sheet for requirements 1 and 2.) Prepare all appropriate journal entries related to the investment during 2024, assuming Ronyan accounts for this investment under the falr value option, and accounts for the Lavery investment in a manner similar to what it would use for securities for which there is not significant influence. Note: if no entry is required for a transactionvevent, select "No journal entry required" in the filst account fleld. Enter your answers in millions (1.e.10,000,000 should be entered as 10). Journal entry worksheet Record the purchase of Lavery Labeling stock for $338 mililon. Note: Enter debits before credtse Journal entry worksheet Record Runyan Bakery's share of Lavery's $220 million net income. Note; Enter debits before credits. Journal entry worksheet Record the receipt of cash dividends of $2 per share on 10 million shares. Note: Enter debits before credits. Journal entry worksheet 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. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Calculate the effect of thest journal entries on 2024 net income, and the amount at which the investment is carried in the December 31, 2024, balance sheet. Note: Enter your answers in millions (0.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. Journal entry worksheet Record Runyan Bakery's share of Lavery's $220 million net income. Note: Enter debits before credits. Prepare all appropriate journal entries related to the investment during 2024, assuming Runyan accounts for this investment under the fair value option, but uses equity method accounting to account for Lavery's income and dividends, and then records a fair value adjustment at the end of the year that allows it to comply with GAAP. Note: If no entry is required for a transaction/event, select "No Journat entry required" in the hirst account field. Enter your aniswers in millions (i.e, 10,000,000 should be entered as 10) Show lessia Journal entry worksheet Fecord the recelpt of cash dividends of $2 per share on 10 million shares. Note: Enter debits betore credits. Prepare all appropriate journal entries related to the investment during 2024, assuming funyan accounts for this investment under the folr value option, but uses equity method accounting to account for Lavery's income and dlvidends, and then records a fair value adjustment at the end of the year that allows it to comply with GAAP. Note: If no entry is required for a transaction/event, select "No fournal entry required" in the. mililions (1.e2,10,000,000 should be entered as 10). Journal entry worksheet 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 miltion. Note; Enter debits before credits. Prepare all appropriate journal entrles related to the investment during 2024, assuming Runyan accounts for this investment under the fair value option, but uses equity method accounting to account for Lavery's income and dividends, and then records a fair value adjustment at the end of the year that allows it to comply with GAAP. 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). Show less a Journal entry worksheet