Matrix, Inc., acquired 25% of Neo Enterprises for S2,000,000 on January 1, 2018, The fair value and book value of 25% of Neo's identifiable net assets was $2,000,000 and $1,600,000 on that date and the difference was attributable to assets that would be depreciated over 10 years. During 2018 Neo recognized net income of $500,000 and paid dividends of $400,000. Neo had a total fair value of $10,000,000 as of December 31, 2018. Required (1.) Prepare the journal entries necessary to account for the Neo investment, assuming that Matrix accounts for that investment as an equity method investment (2) Prepare the journal entries necessary to account for the Neo investment, assuming that Matrix elects the fair-value option. estmnt Neo aoo,coo Cash anvestment Rex ta 3 cosh 0,000 Test In Noo 100,oo o, Tvest in Neo cash i 00,OOD Cash a,000,ooo umrcalired On March 17, 2017, Union Corporation on Corporation purchased 500 bonds of AZOQ common as a long-term investment at $400 per bond. 31. the AZO bonds is $420 and $430, respectively On December 31, 2017, and December 31, 2018, the market value of Required: (1.) What is the appropriate reporting category for this investment? (2) Prepare the adjusting entry on December 31, 2017 (3.) Prepare the adjusting entry on December 31, 2018. nvestment A Q Cash nvestmont AZQ Cash 1,680,000 430 bonds x 400 per urd: l'UBO,000 Cash 430 bonds x per bond-1 nao.co 00D uinrtalitud Hodirg cain ocr -10,00 N. Adjust AFS 0 (330 10,00 S00 (430) jo . Adjust - AFS S,000 unrealited Holding aain