gains 3. How are unrealized statements of Rios Financial Co.? Stock in 15-3A Stock investment transactions, equity method and a PR 15-3A securities Forte Inc. produces and sells theater set designs and costun erations on January 1, Year 1. The following transactionsat Forte Inc, which has a fiscal year ending on December 31: relate to secrities aq Securities Year 1 -sale security at per share, including the brokerage commission. A cash dividend of $0.25 per share was received on the Sankal commission of $75. fair value of $25 per share. Use the valuation allowance for a Purchased 22,000 shares of Sankal Inc. as an available-fo Jan. 22. stock. Mar. 8. Received a cash dividend of $0.22 per share on Sankal In Sankal st Sept. 8. Oct. 17. Sold 3,000 shares of Sankal Inc. stock at $16 per share less a bh ge and is adjusted t available-for Dec. 31. Sankal Inc. is classified as an available-for-sale investment a investments account in making the adjustment. Year 2 Jan. 10. Purchased an influential interest in Imboden Inc. for $720,000 bu 96,000 shares directly from the estate of the founder of Imboasn 300,000 shares of Imboden Inc. stock outstanding. en Inc. Thene a Mar. 10. Received a cash dividend of $0.30 per share on Sankal Inc. s Sept. 12. Received a cash dividend of $0.25 per share plus an extra dividend of sls s share on Sankal Inc. stock. Dec. 31. Received $57,600 of cash dividends on Imboden Inc. stock. Imboden Inc reported net income of $450,000 in Year 2. Forte Inc. uses the equity method accounting for its investment in Imboden Inc. 31. Sankal Inc. is classified as an available-for-sale investment and is adjusted wi fair value of $22 per share. Use the valuation allowance for available-forsaik investments account in making the adjustment for the decrease in fair valu from $25 to $22 per share. Chapter 15 Investments and Fair Value Accounting Instructions 1. Journalize the entries to record these transactions. 2. Prepare the investment-related asset stt and stockholders' equity balance sheet presenta- ear 2, assuming that the Retained Earnings bal- equi e Inc. on Dece ance on December 31, Year 2, is $389,000