1. On March 17, Union Corporation purchased 4,000 shares of AZQ common stock as a long-term investment at $40 per share. At the end of year one the market value of the AZQ stock is $42. At the end of year two it is $43. Required: (1.) What is the appropriate reporting category for this stock? Why? (2.) Prepare the adjusting entry at the end of year one? (3.) Prepare the adjusting entry at the end of year two? 2. On March 1, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $101,000 plus accrued interest. The bonds were purchased at face value. The appropriate interest rate is 6%. Interest on these bonds is payable on January 1 and July 1 of each year. Navy's investment is accounted for as held to maturity. The fair value of the Treasury bonds is $104,000 at year-end. Prepare the appropriate journal entries to record the transactions for the year, including any year-end adjustments. Show calculations, rounded to the nearest dollar.