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During 2019, Investor Co. made the following purchases: On January 1, 2019, purchased 50 Atlazine Corp. 4% bonds at par. Each bond has a $1,000

During 2019, Investor Co. made the following purchases:

On January 1, 2019, purchased 50 Atlazine Corp. 4% bonds at par. Each bond has a $1,000 face value, pays coupons every June 30 and December 31, and matures on December 31, 2028.

On October 1, 2019, purchased 80 ReliaVent Inc. 5% bonds at par. Each bond has a $1,000 face value, pays coupons every March 31 and September 30, and matures on March 31, 2037.

On November 1, 2019, purchased 1,000 of the 5,000,000 outstanding shares of Webdoc Inc. common stock for $54 per share.

The management of Investor Co. classifies the Atlazine bonds as held-to-maturity and the ReliaVent bonds as available-for-sale. The Webdoc investment is not large enough for significant influence.

The December 31, 2019, fair values of the investments were as follows:

Atlazine bonds: $980 each (i.e., at 98)

ReliaVent bonds: $990 each (i.e., "at 99")

Webdoc stock: $58 per share

The December 31, 2020, fair values of the investments were as follows:

Atlazine bonds: $1,010 each (i.e., at 101)

ReliaVent bonds: $970 each ("at 97")

Webdoc stock: $61 per share

During 2021, Investor Co. sold its entire investment in Webdoc stock for $59 per share. The December 31, 2021, fair values of the remaining investments were as follows:

Atlazine bonds: $990 each (i.e., at 99)

ReliaVent bonds: $200 each (i.e., "at 20")

As of December 31, 2021, Investor Co.'s management views the decline in value of the ReliaVent bonds as an impairment.

Aggregate value of the three investment assets that Investor Co. would report on its December 31, 2019 balance sheet = $187,200

PART 2: Refer to the information in question #1. Ignoring taxes, what is the effect of the investments on Investor Co.s reported income on its income statement for 2020?

A. $6,000 increase B. $6,600 increase C. $7,100 increase D. $9,000 increase E. $9,500 increase

PART 3: Refer to the information in question #1. What is the aggregate value of the two remaining investment assets that Investor Co. would report on its December 31, 2021 balance sheet?

A. $63,500 B. $65,500 C. $66,000 D. $125,000 E. $130,000

PART 4: Refer to the information in question #1. Ignoring taxes, what is the effect of the investments on Investor Co.s reported income on its income statement for 2021?

A. $64,000 decrease B. $60,000 decrease C. $53,000 decrease D. $4,000 increase E. $11,000 increase

PLEASE answer ALL PARTS!!!!! Thank you!!!!!

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