On July 1, 2024, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $116 million cash, giving Gupta the ability to exercise significant influence over VB's operations. At the date of acquisition of the stock, VB's net assets had a total fair value of $414 million and a book value of $236 million. Of the $178 million difference, $36 million was attributable to the appreciated value of inventory that was sold during the last half of 2024, $80 million was attributable to buildings that had a remaining depreciable life of 10 years, and $62 million related to equipment that had a remaining depreciable life of five years. Between July 1, 2024, and December 31, 2024, VB earned net income of $48 million and declared and paid cash dividends of $32 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2024, assuming Gupta accounts for this investment by the equity method. 2. Determine the amounts to be reported by Gupta. Required 1 Required 2 Prepare all appropriate journal entries related to the investment during 2024, assuming Gupta accounts for this investment by the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). No 1 2 3 4 Required 1 Transaction 1 2 3 4 Required 2 General Journal Investment in equity affiliate Cash Investment in equity affiliate Investment revenue Cash Investment in equity affiliate Investment revenue Investment in equity affiliate a. Investment in Gupta's December 31, 2024, balance sheet b. Net investment revenue (loss) in Gupta's 2024 income statement c. Investing activities in Gupta's 2024 statement of cash flows $ $ ($ in millions) 105.90 x (2.10) X ✓ (116.00) ✓ Debit 116.00 12.00✔✓ 8.00 > 14.10 X Credit 116.00 12.00 Determine the amounts to be reported by Gupta. Note: Amounts to be deducted, including losses and cash outflows, should be indicated with a minus sign. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). 8.00 Show less A > 14.10 x Show less ▲