Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased cost Hawking Inc. 1,020 $61,506 Pavlov Co. 2,760 86,664 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $72 per share and the Pavlov Co. stock had a market value of $57 per share. Galileo Company had net income of $475,600 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments. Galileo Company Balance Sheet (selected items) December 31, Year 1 Assets Current Assets: Available-for-Sale Investments, at Cost Plus Valuation Allowance for Available-for-Sale Investments b. Prepare the Stockholders' Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for the available-for-sale investments. Galileo Company Balance Sheet (selected Stockholders' Equity items) December 31, Year 1 Stockholders' Equity Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments