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PROBLEM 2 On December 31, 2020 (fiscal year-end) Chair, Inc.'s Trading Security Portfolio has a market value of S110,000. All Securities in the portfolio were

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PROBLEM 2 On December 31, 2020 (fiscal year-end) Chair, Inc.'s Trading Security Portfolio has a market value of S110,000. All Securities in the portfolio were purchased during 2020, and had a total cost of S105,000. What effect would the change in market value (fair value) have on Chair, Inc.'s financial statements for the year ending December 31, 2020. If there is no effect, simply answer "no effect". Type your answers in the respective text boxes: Income Statement: Balance Sheet: Assume that all facts regarding Chair, Inc.'s investment portfolio are the same as stated above, with the exception that the investments had been classified as Available for sale. Identify how the change in market value affected Chair, Inc.'s financial statements for the year ending December 31, 2020. If there is no effect, simply answer "no effect". Type your answers in the respective text boxes: Income Statement: Balance Sheet: PROBLEM 3 - PARTI Clouds Corporation began operations in 2018. The year-end cost and fair values for its available for sale portfolio are as follows: Cost Fair Value December 31, 2018 $220,000 $250.000 December 31, 2019 400.000 350,000 December 31, 2020 510,000 465.000 Record the necessary adjusting journal entries at fiscal year-ends 2018 - 2020. Date Account Title Debit Credit PROBLEM 3 - PART II Assuming the portfolio is comprised of non-influential equity investments, record the necessary adjusting journal entries at fiscal year-ends 2018-2020 Date Account Title Debit Credit PROBLEM 3 - PART III Assuming the portfolio is comprised of trading security investments, how would your answer to PART II of this problem been different? Note: Please don't provide your answer via journal entries: provide your answer in a discussion format by typing it in the text box provided

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