Elevant Co.’s long-term available-for-sale portfolio at December 31, 2008, consists of t...

Elevant Co.’s long-term available-for-sale portfolio at December 31, 2008, consists of the following.

Elevant enters into the following long-term investment transactions during year 2009.

Jan. 29 Sold 3,500 shares of Company B common stock for $79,100 less a brokerage fee of $1,400.

Apr. 17 Purchased 9,900 shares of Company W common stock for $197,500 plus a brokerage fee of

$2,300. The shares represent a 30% ownership in Company W.

July 6 Purchased 4,200 shares of Company X common stock for $118,125 plus a brokerage fee of

$1,650. The shares represent a 10% ownership in Company X.

Aug. 22 Purchased 50,000 shares of Company Y common stock for $375,000 plus a brokerage fee of

$1,100. The shares represent a 51% ownership in Company Y.

Nov. 13 Purchased 8,300 shares of Company Z common stock for $261,596 plus a brokerage fee of

$2,350. The shares represent a 5% ownership in Company Z.

Dec. 9 Sold 40,000 shares of Company A common stock for $515,000 less a brokerage fee of $4,000.

The market values of its investments at December 31, 2009, are: B, $81,375; C, $610,312; W, $191,250; X, $110,250; Y, $531,250; and Z, $272,240.

Required

1. Determine the amount Elevant should report on its December 31, 2009, balance sheet for its longterm investments in available-for-sale securities.

2. Prepare any necessary December 31, 2009, adjusting entry to record the market value adjustment for the long-term investments in available-for-sale securities.

3. What amount of gains or losses on transactions relating to long-term investments in available-forsale securities should Elevant report on its December 31, 2009, income statement?