QUESTION THREE - INVESTMENTS Instructions: Carefully read each question and answer in the spaces provided. Bank' Union National s long-term investment portfolio at December 31, 2011, consists of the following: 20,000 shares of RED common stock 70,000 shares of YOUSEF common stock AED310,000 AED267,000 AED672,000 AED835,000 Union National Bank enters into the following long-term investment transactions during year 2012 (show all your calculations). Jan. 25 Purchased 15,000 shares of MAJOR common stock for AED225,000 plus a brokerage fee of AED770. -22s,a,-+7 Oct. 2 Sold 8.000 shares of RED common stock for AEDI60,000 less a brokerage fee of AED860 The market values of Union N investments at December 31, 2012, are: RED: YOUSEF: AED638,000 MAJOR: AED245,000 D280,000 Required a) Prepare any necessary December 31, 2011, adjusting entry to record the market value adjustment for the long-term investments in available-for-sale equity securities. (4 marks) b) Prepare journal entries to record these transactions assuming Union National Bank does NOT have significant influence. (6 marks) e) Prepare any necessary December 31, 2012, adjusting entry to record the market value adjustment for the long-term investments in available-for-sale equity securities. (5 marks Solution