On December 1 of Year 1, the company made a $100,000 investment in a highly risky Internet stock. The investment is classified as a trading security. Part of the investment agreement prevents the company from selling the investment before January 1 of Year 2. To remove uncertainty about fluctuations in the value of the investment, the company entered into a forward contract with a speculator. Under the forward contract, the company will sell the investment to the speculator on January 1 of Year 2 for $100,000. (Note: For simplicity, ignore the inconsistency in the fact that the securities are classified as trading yet the forward contract guarantees that the company will not earn any return when the securities are sold.) Make all journal entries necessary on December 31 of Year 1 in connection with both the investment securities and the forward contract, assuming that the market value of the securities on December 31 is
(1) $130,000,
(2) $75,000, and
(3) $100,000.