At December 31, 2010, Jeter Corp. had the following equity securities that were purchased during 2010, its first year of operation:

At December 31, 2010, Jeter Corp. had the following equity securities that were purchased during 2010, its first year of operation:

At December 31, 2010, Jeter Corp. had the following equity securities that were purchased during 2010, its first year of operation:

Fair Unrealized
Cost Value Gain (Loss)
Trading Securities:
Security A $ 90,000 $ 60,000 $(30,000)
B 15,000 20,000 5,000
Totals $105,000 $ 80,000 $(25,000)

Available-for-Sale Securities:
Security Y $ 70,000 $ 80,000 $ 10,000
Z 85,000 55,000 (30,000)
Totals $155,000 $135,000 $(20,000)
All market declines are considered temporary. Fair value adjustments at December 31, 2010 should be established with a corresponding charge against
Income Stockholders' Equity



a. $45,000 $ 0
b. $30,000 $30,000
c. $25,000 $20,000
d. $25,000 $ 0







Answer: C


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