Loreal-American Corporation purchased several marketable securities during 2018. At December 31, 2018, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2017, and all are considered securities available-for-sale.

Required:
1. Prepare appropriate adjusting entries at December 31, 2018.
2. What amounts would be reported in the income statement at December 31, 2018, as a result of these adjusting entries?

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Unrealized Holding Gain (Loss) Cost Fair Value Short term: Blair, Inc. ANC Corporation $ 480,000 450,000 $ 930,000 $ 405,000 480,000 $885,000 $(75,000) 30,000 $(45,000) Totals Long term: Drake Corporation Aaron Industries $480,000 720,000 $1,200,000 $ 560,000 660,000 $1,220,000 $ 80,000 (60,000) 20,000