Fredo, Inc Purchased 10% of Sonny Enterprises for $1,000,000 on January

Fredo, Inc purchased 10% of Sonny Enterprises for $1,000,000 on January 1, 2009. Sonny recognized a total of $400,000 of income during 2009, paid $30,000 of dividends to Fredo during 2009, and at December 31, 2009 the market value of the Sonny investment increased to $1,040,000
Required: Write the journal entries necessary to account for the Sonny investment, assuming that Fredo accounts for that investment as (1) an available-for-sale investment, and (2) elects the fair-value option.