6. Fredo, Inc., purchased 10% of Sonny Enterprises for $1,000,000 on January 1, 2018. Sonny recognized a total of $430,000 net income during 2018, paid $33,000 of dividends to Fredo during 2018, and at December 31, 2018, the market value of the Sonny investment increased to $1,043,000.

Required: Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo significant influence over the operating and financial policies of the investee. lacks significant influence or(2) has 1 Record the entry for investment in Sonny Enterprises. 2 Record the entry for cash dividend received. 3 Record the net unrealized holding gain or loss for an available-for-sale investment 1 Record the entry for investment in Sonny Enterprises. 2 Record the revenue from Sonny Enterprise during 2018. 3 Record the receipt of dividend during 2018