Required information Exercise 12-16 (Static) Equity investments; fair value through net income [LO12-5] Skip to question [The following information applies to the questions displayed below.] On January 2, 2021, Sanborn Tobacco Inc. bought 5% of Jackson Industrys capital stock for $90 million. Jackson Industrys net income for the year ended December 31, 2021, was $120 million. The fair value of the shares held by Sanborn was $98 million at December 31, 2021. During 2021, Jackson declared a dividend of $60 million. Exercise 12-16 (Static) Part 2 2. Assume that Sanborn sold the stock on January 2, 2022 for $110 million. Prepare the journal entries Sanborn would use to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Exercise 12-16 (Static) Part 2 2. Assume that Sanborn sold the stock on January 2, 2022 for $110 million. Prepare the journal entries Sanborn would use to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) No Credit Transactions 1 Answer is not complete. General Journal Fair value adjustment Gain on investment (unrealized, NI) Debit 20 1 20 2 2 N Investment in equity securities Cash