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Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain...

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Accounting

Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Incorporated on January 2,2024, for $530 million. At the date of purchase, the book value of Vancouver's net assets was $840 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value exceeded book value by $10 million for the Inventory and by $15 million for the plant facilities. The estimated useful life of the plant facilities is 12 yearsAll inventory acquired was sold during 2024 Vancouver reported net income of $150 million for the year ended December 31,2024. Vancouver paid a cash dividend of $40 million Required: 1. Prepare all appropriate journal entries related to the investment during 20242. What amount should Northwest report as its Income from its Investment in Vancouver for the year ended December 31,2024?3. What amount should Northwest report in its balance sheet as its investment in Vancouver? 4. What should Northwest report in its statement of cash flows regarding its investment in Vancouver?

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EX.13.08