A) At the beginning of 2021, E.T. Co. purchased less than 20% of Jack Beanstalk Co.s common stock and sold some of it during the year. E.T. Co. provides the following information about their investment in Jack Beanstalk Co.:

Description	Number of shares	Per share amount
Purchased shares	20,000	$23
Sold shares	15,000	$14
End-of-year market value of remaining shares	5,000	$27

What is the total amount of net gain or net loss that E.T. Co. will report in its income statement for the year ended December 31, 2021 related to its investment in Jack Beanstalk Co.? (a positive number is a net gain and a negative number is a net loss)

$20,000

($55,000)

($115,000)

$155,000

B)

Gryffindor Co. purchased less than 20% of the common stock of another company and reports the following information for the equity investment:

Description	Amount
Purchase price on January 1, 2020	$666,000
Fair value on December 31, 2020	$555,000
Fair value on December 31, 2021	$622,000

Ignoring taxes, what effect will this investment have on Gryffindor Co.s net income for 2021?

($44,000)

$178,000

$0

$67,000