E 12-16 Equity investments; fair value through net incomeLO12-5 On January 2, 2024, Sanborn Tobacco Inc. bought 5% of Jackson Industry's capital stock for $90 million. Jackson Industry's net income for the year ended December 31, 2024, was $120 million. The fair value of the shares held by Sanborn was $98 million at December 31, 2024. During 2024, Jackson declared a dividend of $60 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Sanborn sold the stock on January 2, 2025 for $110 million. Prepare the journal entry Sanborn would use to record the sale. 5.40

E 12-16 Equity investments; fair value through net income [ LO12-5 On January 2, 2024. Sanborn Tobacco Inc. bought 5% of Jackson Industry's capital stock for $90 million. Jackson Industry's net income for the year ended December 31, 2024, was $120 million. The fair value of the shares held by Sanborn was $98 million at December 31,2024 During 2024, Jackson declared a dividend of $60 million Required: 1. Prepate all appropriate journal entries related to the investment during 2024 2 Ascume that Sanborn sold the sock on January 2.2025 for $110 million. Prepare the journal entry Sanborn would use to record the sale