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Question: check my work problem 1210 investment securities and equity method...

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Check my work Problem 12-10 Investment securities and equity method investments compared 12-7 [L On January 4, 2018, Runyan Bakery paid $324 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 Laverys operations. Runyan received dividends of $2.00 per share on December 15, 2018, and Lavery reported net income of $160 million for the year ended December 31, 2018. The market value of Laverys common stock at December 31. 2018, was $31 per share. On the purchase date, the book value of Laverys net assets was $800 million and: a. The fair value of Laverys depreciable assets, with an average remaining useful ife of six years, exceeded their book value by $80 million b. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: 1. Prepare all appropriate journai entries related to the investment during 2019, assuming Runyan accounts for this investment by the equity method. 2. Prepare the ournal entries required by Runyan assuming that the 10 million shares represent a 0% interest in net assets of Lavery rather than a 30% interest
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