21.. On January 1, 2021, Reston Company purchased 25% of Ace Corporation's common stock, no goodwill resulted from the purchase. Reston appropriately carries this investment at equity and the balance in Reston's investment account was $1,170,000 at December 31, 2021. Ace reported net income of $700,000 for the year ended December 31, 2021, and paid cash dividends on common stock totaling $280,000 during 2021. How much did Reston pay for its 25% interest in Ace? a $1,065.000 b. $1,240,000 C. $1,275,000 d. $1,415,000 -8- 22. On December 31, 2020, Patel Company purchased debt securities as trading securities. Pertinent data are as follows: Fair Value Security Cost At 12/31/21 $132,000 $119,000 B 172,000 186,000 288,000 263,000 On December 31, 2021, Patel transferred its investment in security C from trading to available-for-sale because Patel intends to retain security C as a long-term investment. What total amount of gain or loss on its securities should be included in Patel's income statement for the year ended December 31, 2021? a. $1,000 gain. b. $24,000 loss. C. $25,000 loss. d. $38,000 loss. 23. A debt security is transferred from one category to another. Generally acceptable accounting principles require that for this particular reclassification (1) the security be transferred at fair value at the date of transfer, and (2) the unrealized gain or loss at the date of transfer currently carried as a separate component of stockholders' equity be amortized over the remaining life of the security. What type of transfer is being described? a. Transfer from trading to available-for-sale b. Transfer from available-for-sale to trading C. Transfer from held-to-maturity to available-for-sale d. Transfer from available-for-sale to held-to-maturity