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On January 4, 2016, Runyan Bakery paid $326 million for 10 million 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 received dividends of $3.50 per share on December 15, 2016, and Lavery reported net income of $160 million for the year ended December 31, 2016. The market value of Lavery's common stock at December 31, 2016, was $30 per share. On the purchase date, the book value of Lavery's net assets was $810 million and:

a.

The fair value of Lavery's depreciable assets, with an average remaining useful life of four years, exceeded their book value by $40 million.

Required: 1. Prepare all appropriate journal entries related to the investment during 2016, assuming Runyan accounts for this investment by the equity method. (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).) 2. 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. (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).)

Required 1. Prepare all appropriate journal entries related to the investment during 2016, assuming Runyan accounts for this investment by the equity method. (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).) view transaction listw general journal Journal Entry Worksheet 02805 Record the purchase of Lavery Labeling stock for $326 million. Event General Journal Debit Credit nter debits before credits done clear entry record entry

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