On March 10, 2016, Gesalt Solutions Inc. purchased 5,000 shares of Sperior Technologies for $50 per share. The following information pertains to the price per share of Sperior Technologies shares:

                                             Price
12/31/2016...........................$45
12/31/2017.............................42

Required:

1. Assume that the shares are traded on an open market. Prepare the journal entries required on each date given.

2. Show how the investment and losses would be reported at each year-end on the classified balance sheet and income statement.