On December 1, the company purchased securities for $4,000. On December 31, the company still held the

Question:

On December 1, the company purchased securities for $4,000. 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 fair value was
(a) $5,200 and
(b) $2,600. In addition, before considering the impact of the change in value of the securities, the net income for the company was $3,000. Compute net income assuming that the December 31 fair value of the securities was
(c) $5,200 and
(d) $2,600. Ignore income taxes. Assume that the securities are classified as trading.