Balance sheet presentation of available-for-sale investments OBJ. 4 During 2016, its first year of operations, Galileo Company purchased two available-forsale investments as follows:

Security Shares Purchased Cost Hawking Inc. 900 $44,000 Pavlov Co. 1,780 38,000 Assume that as of December 31, 2016, the Hawking Inc. stock had a market value of $50 per share, and the Pavlov Co. stock had a market value of $24 per share. Galileo Company had net income of $300,000, and paid no dividends for the year ended December 31, 2016. All of the available-for-sale investments are classified as current assets.

a. Prepare the Current Assets section of the balance sheet presentation for the availablefor-sale investments.

b. Prepare the Stockholders’ Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for the available-for-sale investments.