Problem 12-7 Various transactions related to equity investments: fair value through net income [LO012-5] The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017. Mar. 31 Acquired Distribution Transformers Corporation common stock for $500,000. Sep. 1 Acquired $1,050,000 of American Instruments' common stock. Sep. 30 Received a $15,000 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $535,000 Nov. 1 Purchased $1,500,000 of M&D Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock $ 990,000 M&D Corporation common stock $1,570,000 Required: 1. Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end. 2. Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete ths questny enterng your answers in tne tabs DeloW Required1Required 2 Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments Income statement: $15,000 10,000 Dividend revenue Unrealized holding gain on investments held Net income 25,000 Statement of comprehensive income Net income Balance sheet: Assets Current Assets $ 2,550,000 Equity investments Add: Fair value adjustment 10,000 $ 2,560,000 Shareholders' Equity Retained earnings Required 1 Required 2