On January 4, 2024, Runyan Bakery paid $346 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 chose the fair value option to account for this investment. Runyan
On January 4, 2024, Runyan Bakery paid $346 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 chose the fair value option to account for this investment. Runyan received dividends of $2.80 per share on December 15, 2024, and Lavery reported net income of $260 million for the year ended December 31, 2024. The market value of Lavery's common stock at December 31, 2024, was $32 per share. On the purchase date, the book value of Lavery’s identifiable net assets was $910 million and: The fair value of Lavery's
Required:
Assuming Runyan accounts for this investment under the fair value option, prepare all appropriate
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