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Question 2 (Total 20 marks) Fortune Company has the following equity investments with no control or significant influence on December 31, 2020: All of the

Question 2 (Total 20 marks) Fortune Company has the following equity investments with no control or significant influence on December 31, 2020: All of the above securities were purchased in 2020. In 2021, Fortune completed the following investments transactions: The Fortune Company's equity securities appear as follows on December 31, 2021: Required: a. Prepare journal entries to record: (11 marks) 1) The 2020 year-end fair value adjustment for the equity portfolio; 2) The sale of Torus Co. stock on March 1, 2021; 3) The purchase of Simplex Co. stock on April 1, 2021; 4) The 2021 fair value adjustment for the equity portfolio. c. Prepare a table that summarizes the realized gains and losses and the unrealized gains and losses for the equity portfolio at each yearend. (3 marks) d. How do these equity investments affect Fortune's income statement in 2021? (2 marks) Question 2 (Total 20 marks) Fortune Company has the following equity investments with no control or significant influence on December 31, 2020: All of the above securities were purchased in 2020. In 2021, Fortune completed the following investments transactions: The Fortune Company's equity securities appear as follows on December 31, 2021: Required: a. Prepare journal entries to record: (11 marks) 1) The 2020 year-end fair value adjustment for the equity portfolio; 2) The sale of Torus Co. stock on March 1, 2021; 3) The purchase of Simplex Co. stock on April 1, 2021; 4) The 2021 fair value adjustment for the equity portfolio. c. Prepare a table that summarizes the realized gains and losses and the unrealized gains and losses for the equity portfolio at each yearend. (3 marks) d. How do these equity investments affect Fortune's income statement in 2021? (2 marks)

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