On January 2, 2016, Sanborn Tobacco, Inc., bought 5% of Jackson Industry’s capital stock for $90 million as a temporary investment. Sanborn realized that these securities normally would be classified as available-for-sale, but elected the fair value option to account for the investment. Jackson Industry’s net income for the year ended December 31, 2016, was $120 million. The fair value of the shares held by Sanborn was $98 million at December 31, 2016. During 2016, Jackson declared a dividend of $60 million.How would this investment be classified on Sanborn’s balance sheet?Held-to-maturity securitiesTrading securitiesOther securitiesSignificant-influence investmentsAvailable-for-sale securities
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