Determine the amounts to be reported by cameron enter your

Reference no: EM13571184

On January 1, 2013, Cameron Inc. bought 10% of the outstanding common stock of Lake Construction Company for $160 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value was $800 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, 2013, was $260 million. During 2013, Lake declared and paid cash dividends of $40 million. The buildings have a remaining life of 5 years.

Required:

Complete the table below and prepare all appropriate journal entries related to the investment during 2013, assuming Cameron accounts for this investment by the equity method. (If no entry is required for a particular 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).)

($ in millions)	Investee net assets		Ownership interst			Net assets purchased	difference	attributable to:
Cost						$160
Fair Value cameron's assets		x		%	=
Book value cameron's assets		x		%	=

Depreciation adjustment:			Years			Adjustment
Undervaluation of assets	$5	/			=

Event	General Journal	Debit	Credit
1	Investment in Lake Construction shares
	Cash
2	Investment in Lake Construction shares
	Investment revenue
3	Cash
	Investment in Lake Construction shares
4	Investment revenue
	Investment in Lake Construction shares

Determine the amounts to be reported by Cameron. (Enter your answers in millions,(i.e., 10,000,000 should be entered as 10).)

($ in millions)
a. investment in cameron's 2013 balance sheet
b. investment revenue in the income statement
c. investment in the statement of cash flows

Reference no: EM13571184

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