90.2K

Verified Solution

Link Copied!

Required information Exercise 12-16 (Algo) Equity investments; fair value through net income [LO12-5] [The following information applies to the questions displayed below.] On January 2, 2024, Sanborn Tobacco Incorporated bought 10\% of Jackson Industry's capital stock for $91 million. Jackson Industry's 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. Exercise 12-16 (Algo) Part 2 2. Assume that Sanborn sold the stock on January 2, 2025 for $112 million. Prepare the journal entries anborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first iccount field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be antered as 5.5). Journal entry worksheet Record the entry to adjust to fair value on the date of sale. Note: Enter debits before credits. Required information Exercise 12-16 (Algo) Equity investments; fair value through net income [LO12-5] [The following information applies to the questions displayed below.] On January 2, 2024, Sanborn Tobacco Incorporated bought 10\% of Jackson Industry's capital stock for $91 million. Jackson Industry's 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. Exercise 12-16 (Algo) Part 2 2. Assume that Sanborn sold the stock on January 2, 2025 for $112 million. Prepare the journal entrie Sanborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Journal entry worksheet Record the sale of stock on January 2, 2025 for $112 million. Note: Enter debits before credits

Answer & Explanation Solved by verified expert

See Answer