As a long-term investment at the beginning of the fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 8 milion shares for $40 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 the fair value option. During the year, Nursery Supplies earned net income of $40 million and distributed cash dividends of $2.00 per share. At the end of the year, the fair value of the shares is $35 million. Required: 1. How would this investment be classified on Florists balance sheet? Other securities Held-to-maturity security Trading securities Significant-influence investment 2. Prepare all appropriate journal entries related to the investment during 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet 2 3 4 Record the purchase