Business, 03.01.2020 00:31 crtlq

On january 2, 2018, sanborn tobacco inc. bought 10% of jackson industryâ€™s capital stock for $102 million. jackson industryâ€™s net income for the year ended december 31, 2018, was $132 million. the fair value of the shares held by sanborn was $122 million at december 31, 2018. during 2018, jackson declared a dividend of $72 million.

required:
1. prepare all appropriate journal entries related to the investment during 2018.
record the purchase of jackson industry capital stock for $105.
record sanborn tobacco's portion of jackson industry's net income of $135 million.
record the dividend revenue
record the fair value adjustment.
2. assume that sanborn sold the stock on january 2, 2019 for $140 million. prepare the journal entries sanborn would use to record the sale.

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On january 2, 2018, sanborn tobacco inc. bought 10% of jackson industryâ€™s capital stock for $102 m...