Forte, Inc. began operations on $1/1/2016.$ The following transactions relate to Investment Securities acquired by Forte, Inc. The company has a regular calendar year ending on $12/31.$

$2016$:

Jan. $22$ Purchased $22,000$ shares of Sankal Inc. stock as an $$available$-$for$-$sale$$ investment at $$18$ per share including the relevant brokerage commission. This classification reflects the stock as a Long$-$term Stock Investment. The ownership $\%$ is LESS than $20\%$ so the mark$-$to$-$market method is applicable.

Mar. $8$ Received a cash dividend of $$0\mathrm{.}22$ per share on the Sankal Inc. shares.

Sep. $8$ Received a cash dividend of $$0\mathrm{.}25$ per share on the Sankal Inc. shares.

Oct. $17$ Sold $3,000$ shares of Sankal Inc. stock at $$16$ per share LESS a brokerage commission of $$75.$

Dec. $31$ Apply the M$-$T$-$M $[$mark$-$to$-$market$]$ method to this investment. Assume the market price $[$value$]$ is $$25$ per share at this date. Use the valuation allowance account $[($valuation$)$ allowance to adjust Long $-$term $($available$-$for$-$sale$)$ stock investments to market along with the corresponding Unrealized Gain$/$Loss on LT stock investments account.

$2017$:

Jan. $10$ Purchased $96,000$ shares of Imboden, Inc. stock at the market price of $$7\mathrm{.}50$ per share with intent to hold the shares as a long$-$term stock investment. There are only $300,000$ total shares of Imboden stock outstanding, so our acquisition of shares reflects a $32\%$ ownership stake $[96,000/300,000$ shares$].$ Thus, this investment requires use of the EQUITY METHOD.

Mar. $10$ Received a cash dividend of $$0\mathrm{.}30$ per share on the Sankal Inc. stock.

Sep. $12$ Received another cash dividend of $$0\mathrm{.}30$ per share on the Sankal Inc. stock.

Dec. $31$ Received cash dividends of $$57,600$ from Imboden Inc. Recall, that Forte Inc. must account for this dividend using the EQUITY METHOD.

In addition, Imboden Inc. reported Net Income of $$450,000$ for $2017.$ Again, account for this using the EQUITY METHOD.

Dec. $31$ Apply the M$-$T$-$M $[$mark$-$to$-$market$]$ method to the Sankal Inc investment. Assume the market price $[$value$]$ at this date is $$22$ per share. Note this stock price has fallen from the $$25$ price per share at the end of last year.

INSTRUCTIONS:

Record journal entries to record the transactions noted above. SEE EXCEL TEMPLATE

Prepare the following sections of the Balance Sheet $[$B$/$S$]$ for Forte, Inc. on $12/31/2017.$ SEE EXCEL TEMPLATE

The Investment$-$related Asset section of the B$/$S$.$

The Stockholders$$ Equity section of the B$/$S$.$ Assume the $12/31/2017$ balance in Retained Earnings is $$389,000.$