Use the data given in exercise SB-1. On May 19, 2021, Knowlton sold its investment in BCE shares for \(\$ 26\) per share.

1. Journalize the sale. No explanation is required.

2. How does the gain or loss that you recorded here differ from the gain or loss that was recorded at December 31, 2020?

Exercise B-1

Assume Knowlton Holdings Ltd. completed these long-term non-strategic investment transactions during 2020 :

1. Journalize Knowlton's investment transactions assuming the company reports any changes in fair value through other comprehensive income. Explanations are not required.
2. Show how to report the investment and any unrealized gain or loss on Knowlton's balance sheet at December 31, 2020. Ignore income tax

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2020 Feb. 10 Dec. 1 Dec. 31 Purchased 300 shares of BCE, paying $25 per share. Knowlton intends to hold the investment for the indefinite future. Received a cash dividend of $0.36 per share on the BCF shares. Adjusted the BCE investment to its current fair value of $7,000.