Exercise 17-20 Presented below is information related to the purchases of common stock by Sarasota Company during 2017, Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Cost (at purchase date) $90,000 259,000 199,000 $537,000 Fair Value (at December 31) $71.000 312,000 199.000 $581.000 Total In addition, assume that the investment in the Woods Inc. stock was sold during 2018 for $205,000. At December 31, 2018, the following information relates to its two remaining investments of common stock Investment in Arroyo Company stock Investment in Lee Corporation stock (at purchase date) $90,000 259,000 $249,000 Fair Value (at December 31) $135,000 321,000 $457.000 Total Net income before any security gains and losses for 2019 was $994,000. (a) Compute the amount of net income or not loss that Sarasota should report for 2018, taking into consideration Sarasota's security transactions for 2018, assuming Sarasota did not select the fair value option for investments in the Lon and Woods corporations. Net income or net loss that Sarasota should report for 2018. (b) Prepare the journal entry to record unrealized gain or loss related to the investment in Arroyo Company stock at December 31, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31, 2018