Required: 1. Assume you invest in Co. A and Co. B debt at face value and classify your investments as available for sale. Determine dollar amounts for each of the following. For balances, label the amount as either a "debit" or "credit" balance. For income effects, indicate an increase as a "+" (plus) and a decrease as a "-" (minus). Note that Cost, NI, Interest Paid, FMV, and Selling Price are the amounts related to your specific holdings. Year 1 Year 2 Interest Dec. 31 Selling Co. A Co. B Cost $22600 NI Paid FMV Price NI Interest Paid Dec. 31 FMV $3500 $560 $12540 $19000 39900 7650 1170 45930 $3090 $540 $53310 a. The balance in the combined Investment in account is: End of Yr. 1, End of Yr. 2 b. The balance in the combined Fair Value Adjustment account is: End of Yr. 1 End of Yr. 2 c. The balance in the combined Unrealized Loss (Gain) account in AOCI is: End of Yr. 1 End of Yr. 2 d. The effect of these investments on net income is: Yr. 1 Yr. 2 2. Assume you invest in Co. A and Co. B equity with both investments accounted for using the Equity Method. Determine dollar amounts for each of the following. For balances, label the amount as either a "debit" or "credit" balance. For income effects, indicate an increase as a "+" (plus) and a decrease as a "-" (minus). Note that Cost and Selling Price are the amounts related to your specific holdings. However, NI, Dividends Paid, and FMV are the totals reported by each company for that year. Year 1 Year 2 % Own Co. A 20% Co. B 30% NI Cost $22600 $17500 39900 25500 Dividends Dec. 31 Paid FMV $2800 $62700 3900 153100 Selling Price NI Dividends Dec. 31 Pald FMV $19000 $10300 $1800 $177700 a. The balance in the combined Investment in account is: End of Yr. 1 End of Yr. 2