PR 15-3B Stock investment transactions, equity method and available-for-sale securities Glacier Products Inc. is a wholesaler of rock climbing gear. The comp on January 1, Year 1. The following transactions relate to securities acquired OBJ. 3, 4 xcel Products Inc., which has a fiscal year ending on December 31 Year 1 Jan. 18. Purchased 9,000 shares of Malmo Inc. as an available-for-sale investment at pany began operation per share, including the brokerage commission. July 22. A cash dividend of $3 per share was received on the Malmo stock. Oct. 5. Sold 500 shares of Malmo Inc. stock at $58 per share less a brokerage commission of $100 Received a regular cash dividend of $30 per share on Malmo Inc. Malmo Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $36 per share investments account in making the adjustment Dec. 18. stock 31. . . Use the valuation allowance for available-for-sale Year 2 Jan. 25. P urchased an influential interest in Helsi Co. for $800,000 by purchasing 75,000 ares directly from the estate of the founder of Helsi. There are 250,000 shares sh of Helsi Co. stock outstanding. July 16. Received a cash dividend of $3 per share on Malmo Inc. stock. Dec. 16. Received a cash dividend of $3 per share plus an extra dividend of $0.20 per share on Malmo Inc. stock Received $38,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $170,000 in Year 2. Glacier Products Inc. uses the equity method of accounting for its investment in Helsi Co Malmo Inc. is classified as an available-for-sale investment and is adjusted to a fair value of S44 per share. Use the valuation allowance for available-for-sale 31. 31. investments account in making the adjustment for the increase in fair value from $36 to $44 per share Instructions l ounaize the entries to record the preceding ransactions. 2. Prepare the investment-related asset and stockholders' equity balance sheet presenta tion for Glacier Products Inc. on December 31, Year 2, assuming that the Retained Earnings balance on December 31, Year 2, is $700,000