On June 1, 2024, Josh’s Restaurant decides to invest excess cash of $54,400 from the tourist season by purchasing a Jackrabbit, Inc. bond at face value. At year-end, December 31, 2024, Jackrabbit’s bond had a market value of $51,200. The investment is categorized as an available-for-sale debt investment and will be held for the short-term.

Requirements
1. Journalize the transactions for Josh’s investment in Jackrabbit, Inc. for 2024.
2. In what category and at what value would Josh report the asset on the December 31, 2024, balance sheet? In what account would the market price change in Jackrabbit’s stock be reported, if at all?
3. What was the net effect of the investment on Josh’s net income for the year ended December 31, 2024?