17.On January 1, 2018 Sonja paid $1,000,000 for 10,000 of the 40,000 shares of Gloria's outstanding common stock. During 2018, Gloria reported net income of $400,000 and paid $80,000 of dividends to all of its shareholders. As of December 31, 2018, the fair market value of one share of Gloria's stock was $104. On January 1, 2019, Sonja sold all of its Gloria stock for $1,040,000.

Assume Sonja's interest in Gloria gives Sonja the ability to exercise significant influence over Gloria's operating and financial policies.

Prepare all the entries Sonja should have made during 2018 related to its equity investment in Gloria.

Before income taxes, what should Sonja report on her 2018 income statements as a result of its investment in Gloria?Clearly describe what and how much Sonja should report.

Prepare the entry Sonja should make on January 1, 2019 for the sale of this investment.