On January 2, 2024, Sanborn Tobacco Incorporated bought 10% of Jackson Industrys capital stock for $91 million. Jackson Industrys net income for the year ended December 31, 2024, was $121 million. The fair value of the shares held by Sanborn was $100 million at December 31, 2024. During 2024, Jackson declared a dividend of $61 million.

Assume that Sanborn sold the stock on January 2, 2025 for $112 million. Prepare the journal entries Sanborn would use to record the sale

2 Record the entry to adjust to fair value on the date of sale.

3 Record the sale of stock on January 2, 2025 for $112 million.