On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV-NI. Kelly Corporation 1,250 shares of common stock (no-par) at $60 per share Keefe Corporation 750 shares preferred stock ($10 par) at $20 per share On December 31, the company's year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24. Following are the data for the following year (Year 2). Mar. 02: Dividends per share, declared and paid: Kelly Corp. $1, and Keee Corp. $0.50, Oct. 01: Sold 250 shares of Keefe Corporation preferred stock at $25 per share, Dec, 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 d. Prepare the entries required in Year 2 to record dividend revenue, the sale of stock, and the fair value adjustment. Update the Fair Value Adjustment account prior to recording any sale. Eliminate the associated Fair Value Adjustment account upon recording the sale of any investment. Account Name Dr. Cr. Date Mar. 2. Year 2 0 0 OX 0X To record dividends received. Oct. 1, Year 2 0 0 " 0 " OX To adust investment to be sold to fair value Oct. 1, Year 2 0 0 0 0 O X 0 To record sale of investment Dec 31, Year 2 0 X OX 0 To adjust the FVA account. halaman hant On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV-NI. Kelly Corporation 1,250 shares of common stock (no-par) at $60 per share Keefe Corporation 750 shares preferred stock ($10 par) at $20 per share On December 31, the company's year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24. Following are the data for the following year (Year 2). Mar. 02: Dividends per share, declared and paid: Kelly Corp., S1, and Keefe Corp., $0.50. Oct. 01: Sold 250 shares of Keefe Corporation preferred stock at $25 per share. Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 a. Prepare the entry for Drucker Company to record the purchase of the securities. b. Prepare any adjusting entry needed at December 31, Year 1. Note: If a journal entry isn't required for the transaction, select "N/A-Debit" and "N/A-Credit" as the account names and leave the Dr. and Cr. answers blank (zero). Debit Credit Date Nov. 1. Year 1 Account Name Investment in AFS Securities 75,000 0X : 0 OX To record purchase securities, Dec. 31, Year 1 . 0 0 OX 0 x To record adjusting entry. C. Indicate the items and amounts that should be reported on the Year 1 income statement of Drucker and its year-end balance sheet. Assume that the investments are classified as current. Note: Use a negative sign to indicate a loss, e. Indicate items and amounts that should be reported on the Year 2 income statement and year-end balance sheet. Note: Use a negative sign to indicate a loss. Year 2 Income Statement Other Revenues and Gains $ 0 x 0 X Dividend revenue Net gain (loss) on equity securities Balance Sheet, Dec. 31, Year 2 Assets Investment in equity securities $ 0 x Check