5. For several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available-for-sale. The bonds were acquired at a cost of $580,000. At the end of 2018, their fair value was $706,000 and their amortized cost was $590,000. At the end of 2019, their fair value was $700,000 and their amortized cost was $600,000.

At what amount will the investment be reported in the December 31, 2019, balance sheet? What adjusting entry is required to accomplish this objective (ignore interest)?

Balance Sheet

General Journal

At what amount will the investment be reported in the December 31, 2019, balance sheet?

Investment

?

What adjusting entry is required to accomplish this objective (ignore interest)? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

6.

Kim Company bought 35% of the shares of Phelps, Inc., at the start of 2018. Kim paid $27 million for the shares. Thirty five percent of the book value of Phelpss net assets is $20 million, and the difference of $7 million is due to land that Phelps owns that has appreciated in value. During 2018, Phelps reported net income of $4 million and paid a cash dividend of $3.0 million.

What amount does Kim carry the Phelps investment on its balance sheet as of December 31, 2018? (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)

Amount of investment reported in Kim balance sheet: ? million