The following information is available for Barkley Company at December 31, 2014, regarding its investments.

                              

Instructions
  (a) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as trading.
  (b) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as available-for- sale.
  (c) Discuss how the amounts reported in the financial statements are affected by the entries in (a) and (b).