Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward

[answerhappygod]

Northwest Paperboard Company, a paper and allied products
manufacturer, was seeking to gain a foothold in Canada. Toward that
end, the company bought 40% of the outstanding common shares of
Vancouver Timber and Milling, Inc., on January 2, 2021, for $470
million.

At the date of purchase, the book value of Vancouver's net assets
was $810 million. The book values and fair values for all balance
sheet items were the same except for inventory and plant
facilities. The fair value exceeded book value by $10 million for
the inventory and by $15 million for the plant facilities.

The estimated useful life of the plant facilities is 15 years. All
inventory acquired was sold during 2021.

Vancouver reported net income of $210 million for the year ended
December 31, 2021. Vancouver paid a cash dividend of $30
million.

Required:
1. Prepare all appropriate journal entries related
to the investment during 2021.
2. What amount should Northwest report as its
income from its investment in Vancouver for the year ended December
31, 2021?
3. What amount should Northwest report in its
balance sheet as its investment in Vancouver?
4. What should Northwest report in its statement
of cash flows regarding its investment in Vancouver?