Return to question Exercise 12-16 Equity investments; fair value through net income LO12-4] On January 2, 2018, Sanborn Tobacco Inc. bought 5% of Jackson Industry's capital stock for $96 million. Jackson Industry's net income for the year ended December 31, 2018, was $126 million. The fair value of the shares held by Sanborn was $110 million at December 31, 2018. During 2018, Jackson declared a dividend of $66 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2018. 2. Assume that Sanborn sold the stock on January 2, 2019 for $122 million. Prepare the journal entries Sanborn would use to record the sale. 3 Answer is not complete. Complete this question by entering your answers in the tabs below. Reaired 1 Renuired ? Retur iate journal entries related to the investment during 2018. (If no entry is required for entry required" in the first account field. Enter your answers in millions rounded to 1 de e entered as 5.5).) General Journal Debit Investment in Jackson Industry shares 96.0 Cash No journal entry required Cash 3.3 Dividend revenue Fair value adjustment Investment revenue 14.0 Required2 > Return to question orn sold the stock on January 2, 2019 for $122 million. Prepare the journal entries Sanborn would us f no entry is required for a transaction/event, select "No journal entry required in the first account s in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) General Journal Debit Credit Unrealized holding gain-OCi Fair value adjustment 14.0 14.0 0 Cash Unrealized holding gain-oc 122.00 14.0 Investment in Jackson Industry shares Investment revenue 110.0 Required! Prev is.of,9 Next >