Exercise 12-16 (Algo) Equity investments; fair value through net income [LO12-5]

[The following information applies to the questions displayed below.]

On January 2, 2024, Sanborn Tobacco Incorporated bought 10% of Jackson Industry's capital stock for $97 million.

Jackson Industry's net income for the year ended December 31, 2024, was $127 million. The fair value of the shares held by Sanborn was $112 million at December 31, 2024. During 2024, Jackson declared a dividend of $67 million.

Exercise 12-16 (Algo) Part 1

Required:

1. Prepare all appropriate journal entries related to the investment during 2024

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).

Record the purchase of Jackson Industry capital stock for $97 million

Record Sanborn Tabaccos portion of Jackskons industrys net income of $127

Record the dividend revenue

Record the fair value adjustment