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ADP Inc. carries the following debt investments on its books at December 31, 2020, and December 31, 2021. All securities were purchased during 2020.

ADP Inc. carries the following debt investments on its books at December 31, 2020, and December 31, 2021. All

ADP Inc. carries the following debt investments on its books at December 31, 2020, and December 31, 2021. All securities were purchased during 2020. Trading Securities: Company A Company B Company C Company Available-for-Sale Securities: Company X Company Y Company Cost $25,000 $13,000 $35,000 Cost $210,000 $50,000 Value, Dec. 31, 2020 Value, Dec. 31, 2021 $13,000 $20,000 $20,000 $20,000 $30,000 $25,000 Value, Dec. 31, 2020 Value, Dec. 31, 2021 $130,000 $50,000 $70,000 $ 60,000 Required: (1.) Prepare the necessary journal entries for ADP on December 31, 2020, and December 31, 2021. (2.) What net effect would the valuation of these debt investments have on 2020 net income? (3.) What net effect would the valuation of these debt investments have on 2021 net income?

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