On January 2, 2016, Sanborn Tobacco Inc. bought 10% of Jackson Industrys capital stock for $104 million as a temporary investment. Sanborn classified the securities acquired as available-for-sale. Jackson Industrys net income for the year ended December 31, 2016, was $134 million. The fair value of the shares held by Sanborn was $126 million at December 31, 2016. During 2016, Jackson declared a dividend of $74 million.

1. Prepare all appropriate journal entries related to the investment during 2016. (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 $104.

Record Sanborn Tobacco's portion of Jackson Industry's net income of $134 million.

Record the investment revenue.

Record the entry for fair value of adjustment.

	2. Indicate the effect of this investment on 2016 income before taxes. (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)