P16-3A Orly Chemical Company owns stock in numerous other companies. During 20X4. Orly completed the following long-term investment transactions: 20X4 May 1 July 1 Sep. 15 Oct. 12 Dec. 14 Purchased 8,000 shares, which exceeds 20%, of the common stock of DeGaulle Company at total cost of $720.000. Purchased 2.000 additional shares of DeGaulle common stock at cost of $140,000. Received semiannual cash dividend of $4.40 per share on the DeGaulle invest- ment. Purchased 1,000 shares of TEC Corporation common stock as an available-for- sale investment paying $22.50 per share. Received semiannual cash dividend of $0.75 per share on the TEC investment. Dec. 31 Received annual report from DeGaulle Company. Net income for the year was $360,000. Of this amount, Orly's proportion is one third. The current market value of the TEC stock is $19,400. The market value of the DeGaulle stock is $965,000. Required 1. For which investment is current market value used in the accounting? Why is market value used for one investment and not the other? 2. Show what Orly Chemical Company would report on its year-end balance sheet for these investments. (It is helpful to use a T-account for the investment in DeGaulle stock.)