(Learning Objectives 1, 2: Reporting investments on the balance sheet and the related revenue on the income statement) Amsterdam Exchange Company completed the following long-term investment transactions during 20X6:

At year-end the fair market value of the Bangkok shares is €30,300. The fair market value of the Brentwood shares is €655,000.

❙ Requirements 1. For which investment is fair market value used in the accounting? Why is fair market value used for one investment and not the other?

2. Show what Colorado would report on its year-end balance sheet and income statement for these investment transactions. It is helpful to use a T-account for the Long-Term Investment in Brentwood account. Ignore income tax.