Safety Development Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non$-$

strategic investments:

$2023$

Feb. $7$ Purchased $3,100$ common shares of Royal Bank at $$27\mathrm{.}40,$ plus $$500$ in transaction fees.

$19$ Purchased $2,100$ common shares of Imperial Oil at $$54\mathrm{.}00,$ and paid $$250$ in transaction fees.

beginning June $30.$ The market rate of interest on this date was $9\mathrm{.}00\%.$ Sellers Corporation plans to hold this investment

for the duration of the bond's contract life.

May $26$ Purchased $2,900$ common shares of BCE at $$14\mathrm{.}28,$ plus $$200$ in transaction fees.

June $1$ Received a $$0\mathrm{.}25$ per share cash dividend on the Royal Bank common shares.

$17$ Sold $2,100$ Royal Bank common shares at $$27\mathrm{.}90.$

$30$ Received interest on the Minco Inc. bond.

Aug. $5$ Received a $$0\mathrm{.}50$ per share cash dividend on the Imperial oil common shares.

Sept. $1$ Received a $$0\mathrm{.}275$ per share cash dividend on the remaining Royal Bank common shares.

$30$ Received interest on the Minco Inc. bond.

Dec. $31$ Received interest on the Minco Inc. bond.

On December $31,2023,$ the fair values of the investments held by Safety Development Corporation were: Royal Bank, $$28\mathrm{.}40$; Imperial

Oil, $$52\mathrm{.}38$; and BCE, $$14\mathrm{.}40.$ Assume the fair value and carrying value of the Minco Inc. bond were equal.

Required:

Prepare an amortization schedule for the Minco Inc. bond showing only $2023.($Round your intermediate and final answers to the

nearest whole dollar amount. Enter all the amounts as positive values.$)$

$2.$ Prepare journal entries to record the investment activity including the appropriate fair value adjustment on December $31.($Round your intermediate and final answers to the nearest whole dollar amount.$)$

$3.$ Show how the investments will be reported on the December $31,2023,$ balance sheet. $($Round your intermediate and final answers to the nearest whole dollar amount.$)$

Analysis Component:

If the fair value adjustment is not recorded by Safety Development Corporation, what is the impact on the financial statements?