On November 1, 2020, Drucker Co. acquired the following investments in equity securities measured at FV-NI.

Kelly Corporation- 500 shares of common stock (no-par) at \(\$ 60\) per share.

Keefe Corporation-300 shares preferred stock ( \(\$ 10\) par) at \(\$ 20\) per share.

On December 31, 2020, the company's year-end, the quoted market prices were as follows: Kelly Corporation common stock, \$52, and Keefe Corporation preferred stock, \$24. Following are the data for 2021.

Mar. 2, 2021 Dividends per share, declared and paid: Kelly Corp., \$1, and Keefe Corp., \$0.50.

Oct. 1, 2021 Sold 100 shares of Keefe Corporation preferred stock at \(\$ 25\) per share.

Dec. 31, 2021 Fair values: Kelly common, \(\$ 46\) per share, Keefe preferred, \(\$ 26\) per share.

Required

a. Prepare the entry for Drucker Company to record the purchase of the securities.

b. Prepare any adjusting entry needed at December \(31,2020\).

c. Indicate the items and amounts that should be reported on the 2020 income statement of Drucker and its year-end balance sheet. Assume that the investments are classified as current.

d. Prepare the entries required in 2021 to record dividend revenue, the sale of stock, and the fair value adjustment. Update the Fair Value Adjustment account prior to recording any sale. Eliminate the associated Fair Value Adjustment account upon recording the sale of any investment.

e. Indicate items and amounts that should be reported on the 2021 income statement and year-end balance sheet.