Example 1 Record the following transactions of Beacon Inc. in the financial statements effects template below. Assume the transactions occur in 2018. 1) Purchased 2,800 shares of New City Corp. common stock for $40 per share. These securities are publicly traded and Beacon has no influence over New City's business decisions. 2 Received a cash dshare from New Cihy. 4 Sod 1.200 shares t0share heng ice tor he day. 3) Year-end market price of New City common stock is $30.40 per share Income Statement Balance Sheet Liabil Contrib. + Earned Rev- Net Transaction Cash Asset Noncash Assets +Capital Expen- ses - ities Capital enues Income 1) 2) 3) 4) Thermopolis Industries acquired common stock of Riverton, Inc. as an investment. Consider the following transactions 2018 e 4,000 (15%) of the com a $1,740 brokerage commission Riverton reports net income of $118,200. Thermopolis receives a cash dividend of $2.28 per share from Riverton, Inc. . Year-end market price of Riverton is $21.60 per share 2019 Sell all 4,000 shares for $19.80 per share. Complete the table below to show what Thermopolis Industries would report on its balance sheet in 2018 and on its income statement in 2018 and 2019 if the investment is classified as a passive investment in marketable equity securities, or as an equity method investment. 2018 2018 2019 Balance SheetIncome Statement Income Statement Marketable equity securities Equity method investment