On June 1, 2020, Athletes Inc. sold 400 shares of Spartan stock for \(\$ 33\) per share and 100 shares of Wildcat stock for \(\$ 55\) per share. Athletes Inc. purchased 400 shares of Gopher common stock for \(\$ 35\) per share on August 1, 2020. The fair value of the remaining stock held on December 31,2020 , is Badger common stock, \(\$ 42,000 ;\) Spartan common stock, \(\$ 36,000\); Wildcat common stock, \(\$ 20,800\); and Gopher common stock, \(\$ 14,400\).

Required

a. Prepare the entry for the sale of Spartan and Wildcat common stock on June 1, 2020. Prior to recording the sale, update the investments to fair value. Eliminate the associated Fair Value Adjustment balances upon sale of the investments.

b. Record the purchase of Gopher common stock on August 1, 2020.

c. Prepare any adjusting entry needed on December 31,2020 .