Exercise $12-16($Algo$)$ Equity investments; fair value through net income $[$LO$12-5]$

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On January $2,2024,$ Sanborn Tobacco Incorporated bought $5\%$ of Jackson Industry$$s capital stock for $$99$ million. Jackson Industry$$s net income for the year ended December $31,2024,$ was $$129$ million. The fair value of the shares held by Sanborn was $$116$ million at December $31,2024.$ During $2024,$ Jackson declared a dividend of $$50$ million.

Exercise $12-16($Algo$)$ Part $2$

$2.$ Assume that Sanborn sold the stock on January $2,2025$ for $$128$ million. Prepare the journal entries 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 $5\mathrm{.}5).$

JOURNAL ENTRY WORKSHEET:

$1.$Record the entry to adjust to fair value on the date of sale.

$2.$Record the sale of stock on January $2,2025$ for $$128$ million.