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On January 2, 2016, Sanborn Tobacco, Inc., bought 5% of Jackson Industrys capital stock for $90 million as a temporary investment. Sanborn realized that these

On January 2, 2016, Sanborn Tobacco, Inc., bought 5% of Jackson Industrys capital stock for $90 million as a temporary investment. Sanborn realized that these securities normally would be classified as available-for-sale, but elected the fair value option to account for the investment. Jackson Industrys net income for the year ended December 31, 2016, was $120 million. The fair value of the shares held by Sanborn was $98 million at December 31, 2016. During 2016, Jackson declared a dividend of $60 million.

How would this investment be classified on Sanborn's balance sheet?
Held-to-maturity securities
Trading securities
Other securities
Significant-influence investments

Available-for-sale securities

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