Jackson Corp. bought 10% of the shares in Hickory on January 2, 2019. Information related to this investment is presented below:

Company	Percentage Acquired	Acquisition Cost	Net Income for 20191	Dividends Declared and Paid during 20191	Market Value of Shares Held on 12/31/2019
Hickory	10%	140,000	(5,000)	15,000	160,000

¹Amount refers to the total Income or Dividends reported by Hickory, not Jacksons proportionate share of Dividends/Income.

Additional Information:

• Jackson did not purchase the shares in Hickory for short-term profit potential and is unable to exert any influence over Hickorys operations.

• Hickory had a book value of shareholders equity of $900,000 on January 2, 2019 (when its market value was $1,400,000). The difference between Hickorys book value and market value was due to a building owned by Hickory. The building had a $100,000 net book value on Hickorys Balance Sheet, but a market value of $600,000. The building had a remaining useful life of 10 years on the date of the acquisition.

• Jackson uses straight-line depreciation for all assets.

• Jacksons fiscal year end is December 31.

Question

1. Give the journal entry(s) to record Jacksons acquisition of common stock in Hickory
2. Give the journal entries required to account for the investment in Hickory during 2019
3. At what amount was the investment in Hickory listed on Jacksons December 31, 2019 Balance Sheet?
4. On January 2, 2020, Jackson sells 25% of its investment in Hickory. Jackson received $39,000 in cash. Provide Jacksons journal entry for this sale.