17. On January 1, 2018 Sonja paid $1,000,000 for 10,000 of the 40,000 shares of Gloria's outstanding common stock. During 2018, Gloria reported net income of $400,000 and paid $80,000 of dividends to all of its shareholders. As of December 31, 2018, the fair market value of one share of Glorias stock was $104. On January 1, 2019, Sonja sold all of its Gloria stock for $1,040,000.

Assume Sonjas interest in Gloria gives Sonja the ability to exercise significant influence over Glorias operating and financial policies.

• Prepare all of the entries Sonja should have made during 2018 related to its equity investment in Gloria.
• Before income taxes, what should Sonja report on her 2018 income statements as a result of its investment in Gloria? Clearly describe what and how much Sonja should report.
• Prepare the entry Sonja should make on January 1, 2019 for the sale of this investment.