1. Record investment in lake construction shares 2. Record investment revenue 3.

Question

1. Record investment in lake construction shares
2. Record investment revenue
3. Record the cash dividend
4. Record the adjustments for depreciation

Homework G Saved 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. Required1 Calculation Required 1 G] Required 2 Complete the table below. (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). Investee Ownership Net Assets Net Assets Difference Purchased $ in millions) Cost Fair Value Cameron's assets Book Value Cameron's assets Interest Attributable to: S 240 Years Adjustment Investment revenue Required 1 GJ o search tta e m Screenshots . Documents Connect GoO...

Explanation / Answer

req 1 Investee net assets ownership interest net assets purchased Difference Attributable to cost 240 Fair value of Cameron's assets 600 * 20% 120 120 goodwill Book value of camerons assets 500 * 20% 100 20 undervaluation of buildings $10 years adjustment and land $ 10 Depreciation adjustment 10 10 1 req 2 event Debit credit 1 investment in lake 240 cash 240 (being cash paid for investment in lake shares) 2 investment in lake 30 150*20% investment revenue 30 (being equity in investee income) 3 cash 6 30*20% investment in lake 6 (being dividends paid) 4 investment in lake 1 investment revenue 1 (to record depreciation) req3 a) investment in lake = 240+30-6-1 263 b) investment revenue = (30-1) 29 c) investing activities in the statement of cash flows = 240 the amount spent to purchase the shares

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