De Chapter 12 - Investments ICES: E12-20 Equity Method As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 30% of Nursery Supplies Inc.'s 8 million shares for $56 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $40 million and distributed cash dividends of $1.25 per share. At the end of the year, the fair value of the shares is S52 million Prepare journal entries for Florists International for the following: Purchase of the stock Net income earned by Nursery Supplies, Inc. Dividend paid by Nursery Supplies, Inc. Adjustment of fair value of Nursery Supplies, Inc