As a long$-$term investment at the beginning of the $2024$ fiscal year, Florists International purchased $30\%$ of Nursery Supplies Incorporated$$s $8$ million shares of capital stock for $$56$ million. The fair value and book value of the shares were the same at that time. The company realizes that this investment typically would be accounted for under the equity method, but instead chooses to measure the investment at fair value. During the year, Nursery Supplies reported net income of $$40$ million and distributed cash dividends of $$1\mathrm{.}25$ per share. At the end of the year, the fair value of the shares is $$52$ million.

Required:

How would this investment be classified on Florists' balance sheet?

Prepare all appropriate journal entries related to the investment during $2024,$ under the fair value option, and in a manner similar to what Florists would use for investments in equity securities for which it does not have significant influence.

Indicate the effect of this investment on $2024$ income before taxes.