Brook Co. had the following investments in which they held less than 1% ownership at December 31, Year 1: Cost Fair Value ABC Co. Stock 80,000 92,000 XYZ Co. Stock 24,000 37,000 Acme Co. Stock 15,000 10,000 Record the journal entries for the following transactions: A. 12/31/Year 1 Prepare the necessary journal entry to adjust Brook's securities to fair value. Assume there was no previous fair value adjustment for the investments. Year 2 Entries: B. 1/1 Brook purchased a 40% ownership in Reynolds Corporation for $500,000. This was considered significant influence. C. 5/1 Brook sold half of its investment in ABC stock for $55,000 D. 7/1 Brook received a $10,000 dividend from Reynolds Corporation. E. 12/31 Brook learned that Reynolds earned $200,000 of net income this year. F. 12/31 Prepare the necessary adjusting entry(s) to value Brook's investments. On this date, the investments had the following fair values: ABC Co. $57,000 XYZ Co. 20,000 Acme Co. 16,000 Reynolds Corp. 625,000