On January $1,2020$ OurNewco paid $$2$ million for $50,000$ shares of Annie's voting common stock. Annie Company has $100,000$

shares outstanding. At the time of purchase Annie's total stockholders' equity was valued at $$4,000,000.$

Question $5$

If Annie Company reported net income of $$200,000$ and paid dividends of $$3$ per share then at the end $2020$ OurNewco

would report an Investment in Annie balance of$?($use whole dollars with no dollar sign. Hint: write out journal entries and use a

$t-$account to keep track of the investment balance$).$On January $1,2020,$ LIBBYCo purchased $$1,000,000$ of $8\%,20-$year bonds, with interest paid annually. The market rate for similar bonds is $7\%,$ resulting in an issue price of $$1,105,940.$

Flag question: Question $1$

Question $12$ pts

Assume the management intends to treat this as an available for sale security. The fair value of the bonds at December $31,2020$ was $$1,000,000.$ At the end of $2020$ the FV adjustment account balance for this investment will be$?($use whole numbers without dollar signs and enter any credit balance as a negative$)$