On January 1, 2015 Apple purchased 5% of the outstanding common stock of Target Co. for $150,000. The total fair value of Target Co. is $3,000,000. Apple accounts for this investment at fair value as trading securities. On June 30, 2016, Apple purchased an additional 30% of Targets outstanding common stock for $1,020,000. The total fair value of Target is $3,400,000. Apple now has signicant inuence over Target and must apply the equity method of accounting. Apple and Target both have December 31 year ends. At January 1, 2015, Target's book value is $2,600,000 and has intangible assets with a book value of $50,000 and a fair value of $350,000. The intangibles have a 10 year life. At June 30, 2016, Target's book value is $2,750,000 and has intangible assets with a book value of $50,000 and a fair value of $320,000. The intangibles have a 9 year life. Any other excess of fair value over book value is allocated to goodwill. During 2015, 2016 and 2017' the following activity occurred for Target: 2015 20 16 20 17 Net Income (loss) $160,000 $190,000 ($80,000) Dividends paid 10,000 20,000 20,000 Sales of inventory sold to Target 75,000 95,000 115,000 Fair value ofstoclc at 12/31 3,300,000 3,600,000 3,500,000 Gross prot percentage 25% 25% 25% Target holds Apple inventory at the end of 2015, 2016 and 20\" valued at $17,000, $20,000 and $25,000, respectively. The inventory is consumed in the following year. 23. Prepare thejournal entries to account for the investment under the fair value method trading securities for 2015. What is reported on the balance sheet and income statement of Apple related to its investment in Target at December 31, 2015? b. Prepare thejournal entries to record the increase in the investment account and change in accounting to the equity method at June 30, 2016. Assume income is earned and dividends are paid evenly throughout the year. c. Prepare thejournal entries to account for the investment under the equity method for 2016 and 2017. d. What is the market value of Apple's investment in Target at December 31, 2016 and 201?? What is the balance in the investment in target account at December 31, 2016 and 2017'? Prove the investment account balance at December 31, 2016 and 2017. What is reported on Apple's balance sheet related to the equity investment at December 31, 2016 and 2017? What is reported on Apple's income statement related to the equity investment for the year ended December 31, 2016 and 2017