Exercise 17-20 Presented below is information related to the purchases of common stock by Ivanhoe Company during 2017. Fair Value (at December 31) Investment in Arroyo Company stock Cost (at purchase date) $107,000 234,000 178,000 $519,000 Investment in Lee Corporation stock $86,000 281,000 189,000 $556,000 Investment in Woods Inc. stock Total In addition, assume that the investment in the Woods Inc. stock was sold during 2018 for $193,000. At December 31, 2018, the following information relates to its two remaining investments of common stock. Investment in Arroyo Company stock Cost (at purchase date) $107,000 234,000 $341,000 Fair Value (at December 31) $148,000 291,000 $439,000 Investment in Lee Corporation stock Total Net income before any security gains and losses for 2018 was $848,000. (a) Compute the amount of net income or net loss that Ivanhoe should report for 2018, taking into consideration Ivanhoe's security transactions for 2018, assuming Ivanhoe did not select the fair value option for investments in the Lee and Woods corporations. Net income or net loss that Ivanhoe 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 Click if you would like to Show Work for this question: Open Show Work