Johnson Inc.?s non-strategic investment portfolio at December 31, 2019, consisted of the following:

Johnson had no other debt and equity investments at December 31, 2019, other than those shown above. During 2020, Johnson engaged in the following transactions:

Required

Journalize the above transactions.

Analysis Component: Assume the Allen Corp. shares were sold on January 16, 2021, for $364,000. Calculate the investment income or loss and explain the impact on the financial statements.

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Debt and Equity Investments Fair Value Cost 10,000 Xavier Corp. common shares. 1,250 Young Inc. common shares. 120,000 Zed Corp. common shares $163,500 $145,000 62,000 65,000 40,000 35,600 2020 Jan. 17 Sold 750 common shares of Young Inc. for $36,000. Johnson Inc. planned to hold these shares for less than one year. Purchased 5,000 common shares of Allen Corp. for $300,000. The shares represent a 30% ownership in Allen Corp. Received dividends from Allen Corp. at the rate of $2.50 per share. 14 Sold the remaining Young Inc. shares at $31.50. 28 Mar. June Aug. Purchased a 5% ownership in Davis Corp. by acquiring 10,000 common shares at a total of $89,000. Johnson Inc. will sell these shares in six to nine months. Nov. Sold 10,000 shares of Xavier Corporation for $160,000. Allen Corp. announced a net profit of $280,000 for the year. Dec. 30 Dec. 31