Required: 1. Complete the table below and prepare all appropriate journal entries related to the investment during 2021, assuming Cameron accounts for this investment by the equity method 2. Determine the amounts to be reported by Cameron Complete this question by entering your answers in the tabs below, Required 1 Calculation Required 1 G Required 2 Determine the amounts to be reported by Cameran. (Amounts to be deducted, incluating losses and cash outflows, should be indicated with a minus sign. Enter your answers in milions, (e, 10,000,000 should be entered as 103.) initions) & investment in Cameron's 2021 balance sheet investment revenue in the income statement e Investing activities in the statement of cash flows (10/
Required: 1. Complete the table below and prepare all appropriate journal entries related to the investment during 2021, assuming Cameron accounts for this investment by the equity method 2. Determine the amounts to be reported by Cameron Complete this question by entering your answers in the tabs below, Required 1 Calculation Required 1 G Required 2 Determine the amounts to be reported by Cameran. (Amounts to be deducted, incluating losses and cash outflows, should be indicated with a minus sign. Enter your answers in milions, (e, 10,000,000 should be entered as 103.) initions) & investment in Cameron's 2021 balance sheet investment revenue in the income statement e Investing activities in the statement of cash flows (10/
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 12-23 (Algo) Equity method [LO12-6, 12-7]
On January 1, 2021, Cameron Inc. bought 30% of the outstanding common stock of Lake Construction Company for $420 million cash,
giving Cameron the ability to exercise significant influence over Lake's operations. At the date of acquisition of the stock, Lake's net
assets had a fair value of $800 milion. Its book value was $700 million. The difference was attributable to the fair value of Lake's
buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended
December 31, 2021, was $250 millon. During 2021, Lake declared and paid cash dividends of $30 million. The buildings have a
remaining life of 5 years.
Required:
1. Complete the table below and prepare all appropriate journal entries related to the investment during 2021, assuming Cameron
accounts for this investment by the equity method
2. Determine the amounts to be reported by Cameron,
Complete this question by entering your answers in the tabs below,
Required 1 Required 1 G3 Required 2
Calculation
Determine the amounts to be reported by Cameron, (Amounts to be deducted, incluating losses and cash outflows, should be
indicated with a minus sign. Enter your answers in milions, (ie, 10,000,000 should be entered as 103.)
in miliona)
& Investment in Cameron's 2021 balance sheet
investment revenue in the income statement
e Investing activities in the statement of cash flows
(10/](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F306544d4-bfab-472e-b269-53a01660a688%2Ff7f5183d-7ede-4edd-b8d5-e9ee0221ec15%2Fu0iaekb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 12-23 (Algo) Equity method [LO12-6, 12-7]
On January 1, 2021, Cameron Inc. bought 30% of the outstanding common stock of Lake Construction Company for $420 million cash,
giving Cameron the ability to exercise significant influence over Lake's operations. At the date of acquisition of the stock, Lake's net
assets had a fair value of $800 milion. Its book value was $700 million. The difference was attributable to the fair value of Lake's
buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended
December 31, 2021, was $250 millon. During 2021, Lake declared and paid cash dividends of $30 million. The buildings have a
remaining life of 5 years.
Required:
1. Complete the table below and prepare all appropriate journal entries related to the investment during 2021, assuming Cameron
accounts for this investment by the equity method
2. Determine the amounts to be reported by Cameron,
Complete this question by entering your answers in the tabs below,
Required 1 Required 1 G3 Required 2
Calculation
Determine the amounts to be reported by Cameron, (Amounts to be deducted, incluating losses and cash outflows, should be
indicated with a minus sign. Enter your answers in milions, (ie, 10,000,000 should be entered as 103.)
in miliona)
& Investment in Cameron's 2021 balance sheet
investment revenue in the income statement
e Investing activities in the statement of cash flows
(10/
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