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On July 1,2024, Gupta Corporation bought 25% of the outstanding common stock of VB Company...

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Accounting

On July 1,2024, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $132 million cash, giving Gupta the ability to exercise significant influence over VBs operations. At the date of acquisition of the stock, VBs net assets had a total fair value of $478 million and a book value of $252 million. Of the $226 million difference, $52 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 $94 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 $68 million and declared and paid cash dividends of $40 million.
Determine the amounts to be reported by Gupta:
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

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