Elevant Co.€™s long-term available-for-sale portfolio at December 31, 2010, consists of the following.

Elevant enters into the following long-term investment transactions during year 2011.
Jan. 29 Sold 3,500 shares of Company B common stock for $79,100 less a brokerage fee of $1,400.
Apr. 17 Purchased 9,900 shares of Company W common stock for $197,500 plus a brokerage fee of $2,300. The shares represent a 30% ownership in Company W.
July 6 Purchased 4,200 shares of Company X common stock for $118,125 plus a brokerage fee of $1,650. The shares represent a 10% ownership in Company X.
Aug. 22 Purchased 50,000 shares of Company Y common stock for $375,000 plus a brokerage fee of $1,100. The shares represent a 51% ownership in Company Y.
Nov. 13 Purchased 8,300 shares of Company Z common stock for $261,596 plus a brokerage fee of $2,350. The shares represent a 5% ownership in Company Z.
Dec. 9 Sold 40,000 shares of Company A common stock for $515,000 less a brokerage fee of $4,000.
The fair values of its investments at December 31, 2011, are: B, $81,375; C, $610,312; W, $191,250; X, $110,250; Y, $531,250; and Z, $272,240.
Required
1. Determine the amount Elevant should report on its December 31, 2011, balance sheet for its long-term investments in available-for-sale securities.
2. Prepare any necessary December 31, 2011, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.
3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale securities should Elevant report on its December 31, 2011, income statement?

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Available-for Sale Securities Cost Fair Value 40,000 shares of Company A common stock 7,000 shares of Company B common stock .. 17,500 shares of Company C common stock.... 159,380 662,600 $535,300 $500,000 151,000 640,938