Park Co

Park Co.’s long-term available-for-sale portfolio at December 31, 2010, consists of the following:

Available-for-Sale Securities                                   Cost                 Fair Value
80,000 shares of Company A common stock   $  1,070,600      $      980,000
14,000 shares of Company B common stock   $      318,750     $      308,000
35,000 shares of Company C common stock   $  1,325,500      $  1,281,875
$  2,714,850 – $  2,569,875

Park enters into the following long-term investment transactions during year 2011:

Sold 7,000 shares of Company B common stock for $158,375 less a brokerage fee of $3,100.
Purchased 20,000 shares of Company W common stock for $395,000 plus a brokerage fee of $3,500. The shares represent a 30% ownership in Company W.
Purchased 9,000 shares of Company X common stock for $253,125 plus a brokerage fee of $3,500. The shares represent a 10% ownership in Company X.
Purchased 100,000 shares of Company Y common stock for $750,000 plus a brokerage fee of $8,200. The shares represent a 51% ownership in Company Y.
Purchased 17,000 shares of Company Z common stock for $533,800 plus a brokerage fee of $6,900. The shares represent a 5% ownership in Company Z.
Sold 80,000 shares of Company A common stock for $1,030,000 less a brokerage fee of $4,100.

The fair values of its investments at December 31, 2011, are:
Company B – $      162,750 –
Company C- $  1,220,625 –
Company W- $      382,500 –
Company X- $      236,250 –
Company Y- $  1,062,500 –
Company Z- $      557,600 –

1. Determine the amount Park should report on its December 31, 2011, balance sheet for its long-term investments in available-for-sale securities. (Omit the “$” sign in your response) Amount $

2. Prepare any necessary December 31, 2011, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities. (Omit the “$” sign in your response.)

3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale securities should Park report on its December 31, 2011, income statement?