Bridgeport Corporation made the following cash purchases of securities during 2020, which is the first year in which Bridgeport invested in securities. 1. | | On January 15, purchased 9,000 shares of Sanchez Companys common stock at $33.50 per share plus commission $1,784. | 2. | | On April 1, purchased 4,500 shares of Vicario Co.s common stock at $52 per share plus commission $3,031. | 3. | | On September 10, purchased 6,300 shares of WTA Co.s preferred stock at $26.50 per share plus commission $4,418. | On May 20, 2020, Bridgeport sold 3,420 shares of Sanchez Companys common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $3,465. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Bridgeport told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases. | | | |