Instructions Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y6. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31, 2016: Jan 10 Purchased an influential interest in Imboden Inc. for $720,000 by purchasing 96,000 shares directly from the estate of the founder of Imboden Inc. There are 300,000 shares of Imboden Inc. stock outstanding Received $67,600 of cash dividends on Imboden Inc, stock. Imboden Inc reported net income of $450,000 in 20Y6. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. Dec. 31 Required: 1. Journaize the entries to record these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journata do not use lines for journal explanations. Every Nine on a journal page is used for debut or credit entries CNOW journals will automatically indenta crecht entry when a credit amount is entered 2. Should Forte Inc.'s investment in Imboden inic be reported at fair value on its financial statements for the year ending December 31, 20Y6? Chart of Accounts REVENUE ASSETS 410 Sales 110 Cash 611 Interest Revenue 612 Dividend Revenue 621 Income of Imboden inc. 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 745 Office Supplies 146 Store Supplies 151 Prepaid Insurance 163 Investment in Imboden Inc. Stock 165 Valuation Allowance for Trading Investments 166 Valuation Allowance for Available-for-Sale investments 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 561 Depreciation Expense Store Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable 251 Sales Tax Payable 562 Depreciation Expense Office Equipment 590 Miscellaneous Expense 710 Interest Expense 721 Loss of Imboden inc. EQUITY 731 Loss on Sale of investments 741 Unrealized Loss on Trading Investments 311 Common Stock 312 Paid In Capital in Excess of Par Common Stock 321 Preferred Stock 322 Paid-in Capital in Excess of Par-Preferred Stock 331 Treasury Stock 332 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (Loss) on Available for Sale Investments 351 Cash Dividends 352 Stock Dividends Journal 1 Journakze the entries to record these transactions Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use thes for journal explanations. Every Ane on a joumal page is used for debitor credit entries CNOW journals will automatically indent a credit entry when a credit amount is entered PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DENIT CREDIT ASSETS LIABILITIES EQUITY 1 Final Question 2. Should Forte Inc.'s investment in Imboden Inc. be reported at fair value on its financial statements for the year ending December 31, 2046