Novak Corporation made the following cash purchases of securities during 2020, which is the first year in which Novak invested in securities. 1. On January 15, purchased 12,400 shares of Sanchez Company's common stock at $33.50 per share plus commission $2.464. 2. On April 1, purchased 6,200 shares of Vicario Co's common stock at $52 per share plus commission $4,170. 3. On September 10, purchased 8,680 shares of WTA Co's preferred stock at $26.50 per share plus commission $6,084. On May 20, 2020, Novak sold 4,836 shares of Sanchez Company's common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $4,774. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Novak told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases.