Plankton Corporation’s trial balance at December 31, 2015, is presented below:

All transactions and adjustments for 2015 have been recorded and reported in the trial balance except for the items described below.

Instructions
(a) Record the transactions.
(b) Prepare an updated trial balance at December 31, 2015, that includes these transactions.
(c) Using the income statement accounts in the trial balance, calculate income before income tax. Assuming Plankton has a 27% income tax rate, prepare the journal entry to adjust income taxes for the year. Note that Plankton has recorded $50,000 of income tax expense for the year to date. Update the trial balance for this additional entry. For the purposes of this question, ignore the income tax relating to other comprehensive income.
(d) Prepare the following financial statements for Plankton: (1) income statement, (2) statement of comprehensive income, (3) statement of changes in shareholders’ equity, and (4) balance sheet. For the purposes of this question, ignore the income tax on other comprehensive income and accumulated other comprehensive Income.
(e) Assuming instead that Plankton purchased the Solar Inc. bonds to trade, describe how the investment and related income should be valued and reported in Plankton’s financial statements.
(f) For each of Plankton’s investments, explain how the valuation and reporting of the investment and related income accounts might differ if Plankton were a private company reporting under ASPE.