13. At December 31, 2020, the equity investments of Sarasota Inc. that were accounted for using the FV-OCI model without recycling were as follows:

Investment		Cost and Carrying Amount				Fair Value			Unrealized Gain (Loss)
Ahn Inc.			$174,700			$150,800			$(23,900	)
Burnham Corp.			121,500			141,200			19,700
Chi Ltd.			72,900			75,300			2,400
Total			$369,100			$367,300			$(1,800	)

Because of a change in relationship with Ahn Inc., Sarasota Inc. sold its investment in Ahn for $153,700 on January 20, 2021. No other investments were acquired or sold during 2021; however, a dividend of $1,300 was received from Burnham Corp. in June. At December 31, 2021, the fair values of Burnham and Chi shares were $153,900 and $73,000, respectively.

A) Prepare the entry to adjust the portfolio of investments to fair value at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

B) Prepare the presentation of all investment-related accounts on the statement of financial position at December 31, 2020. Assume that the balance of AOCI at December 31, 2019 is zero. (Enter negative amounts using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

Sarasota Inc. Statement of Financial Position choose the accounting period For the Year Ended December 31, 2020For the Month Ended December 31, 2020December 31, 2020
select an opening subsection name Current AssetsTotal Current AssetsShareholders EquityTotal Shareholders EquityTotal Long-term InvestmentsLong-term Investments
select a balance sheet item CashInventoryOther Current LiabilitiesUnrealized Losses on FV-OCI InvestmentsUnrealized Gains on FV-OCI InvestmentsInvestments in Equity Securities, FV-OCI		$enter a dollar amount
select an opening section name Long-term InvestmentsTotal Shareholders EquityTotal Current AssetsShareholders EquityTotal Long-term InvestmentsCurrent Assets
select a balance sheet item Total Accumulated Other Comprehensive IncomeAccumulated Other Comprehensive IncomeTotal Long-Term DebtLong-Term InvestmentsLong-Term DebtFixed Assets
select a balance sheet item Unrealized Gains on FV-OCI InvestmentsInventoryUnrealized Losses on FV-OCI InvestmentsInvestments in Equity Securities, FV-OCIOther Current LiabilitiesCash		$enter a dollar amount

C) Indicate what accounts and amounts would be reported on the statement of comprehensive income for the year ended December 31, 2020, and where each would be reported. (Enter negative amounts using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

Sarasota Inc. Statement of Comprehensive Income choose the accounting period For the Month Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020
select a comprehensive income item Other Comprehensive Income Item that will be reclassified to net incomeComprehensive Income / (Loss)Other Comprehensive Income Item that will not be reclassified to net incomeNet Income / (Loss)Gross Profit / (Loss)		$XXX
select an opening section name Comprehensive Income / (Loss)Gross Profit / (Loss)Other Comprehensive Income Item that will not be reclassified to net incomeOther Comprehensive Income Item that will be reclassified to net incomeNet Income / (Loss)
select a comprehensive income item Holding Gains on InvestmentsDividend RevenueUnrealized net loss on FV-OCI investmentsUnrealized gain on FV-OCI investmentsInterest Expense		enter a dollar amount
select a closing name for this statement Net Income / (Loss)Comprehensive Income / (Loss)Other Comprehensive Income Item that will not be reclassified to net incomeOther Comprehensive Income Item that will be reclassified to net incomeGross Profit / (Loss)		$XXX

D) Prepare the journal entries for the 2021 sale of the investment in Ahn Inc., including reclassifying holding gains or losses to retained earnings and for the dividend received from Burnham Corp. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

E) Prepare the journal entry required at December 31, 2021, to adjust the investments to fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)