Hurricane Inc. purchased a portfolio of available-for-sale securities in 2014, its first year of operations. The cost and fair value of this portfolio on December 31, 2014, was as follows:

On June 12, 2015, Hurricane purchased 1,450 shares of Rogue Wave Inc. at $45 per share plus a $100 brokerage fee.
a. Provide the journal entries to record the following:
1. The adjustment of the available-for-sale security portfolio to fair value on December 31, 2014.
2. The June 12, 2015, purchase of Rogue Wave Inc. stock.
b. How are unrealized gains and losses treated differently for available-for-sale securities than for tradingsecurities?

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Number of Shares Name Tornado Inc. Tsunami Corp Typhoon Corp Total Cost $14,000 31,250 43,870 $89,120 Total Fair Value $15,600 35,000 42,800 $93,400 800 Corp. 1250 2,140 Total