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The following information applies to the questions displayed below. During January 2016, Optimum Glass Company purchased the following securities as its long-term available-for-sale securities investment portfolio D Corporation common stock: 12,800 shares (96,200 outstanding) at $11 per share F Corporation bonds: $315,000 (15-year, 7 percent) purchased at par (not to be held to maturity) Subsequent to acquisition, the following data were available: 2016 2017 Net income reported at December 31: D Corporation F Corporation $ 32,000 $376,000 $42,000 $567,000 Dividends and interest paid during the year: D Corporation common stock cash dividends (per share) F Corporation bonds interest $ 0.50 $ 22,050 $0.60 $ 22,050 Fair value at December 31: D Corporation common stock (per share) F Corporation bonds $ 10.00 $267,000 $11.50 $277,000 1. Required 1. What accounting method should be used for the investment in D common stock? F bonds? Accounting Method Fair value method Fair value method D common stock F bonds 2-d. Prepare the journal entries for the company for each year to record fair value effects at year-end. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the fair value effects at 2016 year-end when D Corporation common stock is selling at $10.00 per share and F Corporation bonds are selling for $267,000 Note: Enter debits before credits. Year General Journal Debit Credit 2016 Net unrealized gains (losses) 279,810 Investments in AFS securities Record entry Clear entry View general journal 2-d. Prepare the journal entries for the company for each year to record fair value effects at year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the fair value effects at 2017 year-end when D Corporation common stock is selling at $11.50 per share and F Corporation bonds are selling for $277,000 aa and F Corporation bonds are Note: Enter debits before credits. Year General Journal Debit Credit 2017 Investments in AFS securities 32,000 Net unrealized gains (losses) Record entry Clear entry View general journal 3. For each year, show how the following items and their amounts should be reported on the financial statements: (Amounts to be deducted should be indicated by a minus sign.) OPTIMUM GLASS COMPANY Balance Sheet (Partial) 2016 2017 Long-term investments: Stockholders' equity: OPTIMUM GLASS COMPANY Income Statement (Partial) 2016 2017