Waterway Corporation made the following cash purchases of securities during 2020, which is the first year in which Waterway invested in securities. 1. On January 15 , purchased 10,800 shares of Sanchez Company common stock at $33.50 per share plus commission $2,144. 2. On April 1, purchased 5,400 shares of Vicario Co.'s common stock at $52 per share plus commission $3,634. 3. On September 10 , purchased 7,560 shares of WTA Co.'s preferred stock at $26.50 per share plus commission $5,300. On May 20,2020, Waterway sold 4,212 shares of Sanchez Company's common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $4,158. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Waterway told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases. tbook and Media