The following information applies to the questions displayed below.$]$

On January $2,2024,$ Sanborn Tobacco Incorporated bought $5\%$ of Jackson Industry$$s capital stock for $$96$ million. Jackson Industry$$s net income for the year ended December $31,2024,$ was $$126$ million. The fair value of the shares held by Sanborn was $$110$ million at December $31,2024.$ During $2024,$ Jackson declared a dividend of $$66$ million.

$1.$ Prepare all appropriate journal entries related to the investment during $2024.$

Journal entry worksheet

a$-$ Record the purchase of Jackson Industry capital stock for $$96$ million.

b$-$ Record Sanborn Tobacco's portion of Jackson Industry's net income of $$126$ million.

c$-$Record the dividend revenue.

d$-$Record the fair value adjustment.

$2.$ Assume that Sanborn sold the stock on January $2,2025$ for $$122$ million. Prepare the journal entries Sanborn would use to record the sale.

a$-$ Record the entry to adjust to fair value on the date of sale.

b$-$ Record the sale of stock on January $2,2025$ for $$122$ million.