Information related to Jones Company's portfolio of trading securities at December 31, 2017, follows:

Aggregate cost of securities.........................$340,000

Gross unrealized gains (cumulative)....................8,000

Gross unrealized losses (cumulative)..................52,000

Jones reported a $10,000 credit balance in its Fair value adjustment-Trading securities account in its December 31, 2016 (prior year), balance sheet. Assume that it sold no trading securities during 2016 or 2017.

Required:

1. How much should Jones report as unrealized gain or loss on its 2017 income statement?

2. Prepare the journal entry that Jones would make to record the 2017 fair value adjustment to its trading portfolio.