At December 31, 2012, the trading securities for Oglesbee, Inc. are as follows.
|
Security
|
Cost
|
Fair Value
|
|
A
|
$17,500
|
$16,000
|
|
B
|
12,500
|
14,000
|
|
C
|
23,000
|
19,000
|
|
$53,000
|
$49,000
|
Instructions
(a) Prepare the adjusting entry at December 31, 2012, to report the securities at fair value.
(b) Show the balance sheet and income statement presentation at December 31, 2012, after adjustment to fair value.