Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a tradinginvestment for £13,200. During the year, Sherman paid a cash dividend of £3.25 per share. Atyear-end, Sherman shares were selling for £34.50 per share.Prepare Fairbanks' journal entries to record:(a) the purchase of the investment,(b) the dividends received, and(c) the fair value adjustment.

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