On December 1, the company purchased securities for $1,000. On December 31, the company still held the

Question:

On December 1, the company purchased securities for $1,000. On December 31, the company still held the securities. Make the necessary adjusting journal entry to record a change in value of the securities assuming that their December 31 market value was
(a) $1,200 and
(b) $850. In addition, before considering the impact of the change in value of the securities, the net income for the company was $1,500. Compute net income assuming that the December 31 market value of the securities was
(c) $1,200 and
(d) $850.
Ignore income taxes. Assume that the securities are classified as trading.