1) the debt investments is held-to-maturity 5-year bond with an $86,000 face value and 10% stated interest rate. Interest is received on the first of each year. The bond was initially issued 1/1/18. The bond was purchased for $79,800 and provides a 12% return. Prepare the necessary year-end entry to record interest revenue and discount amortization using the effective interest method.

2) The equity investments consists of a 30% stock ownership of ABC Corportation in which Robinson has significant influence. ABC Corporation reported $100,000 in net income for 2018. Record the proper adjustment to the equity investment account.