During 2013, Financial Holdings purchased equity securities for trading. At December 31, 2013, the securities for Financial Holdings were as follows:

The following transactions with respect to Financial Holdings' investments occurred during 2014:
Jan. 15 Purchased 1,500 common shares of Hazmi for $15.00 per share. The shares were purchased to trade.
Mar. 20 Received dividends on the PYK preferred shares of $1.50 per share.
June 15 Sold 750 of the Sabo common shares for $15.75 per share.
Aug. 5 Received dividends on the Sabo common shares of $2.50 per share.
Oct. 15 Received an additional 1,500 common shares of Hazmi as a result of a 2-for-1 stock split.
At December 31, 2014, the securities held by Financial Holdings were trading on the TSX at the following prices:
Security Price
Sabo common shares...........................$16.00
PYK $1.50 preferred shares.....................13.75
Hazmi common shares............................7.00
Instructions
(a) Show how the securities would be reported on Financial Holdings' December 31, 2013, balance sheet.
(b) Assuming that the purchases of Sabo common shares and PYK preferred shares were Financial Holdings' only investment transactions in 2013, show what would be reported in the company's December 31, 2013, income statement.
(c) Record Financial Holdings' 2014 transactions and any required adjusting journal entries at December 31, 2014.
Taking It Further
Calculate the total profit/loss (over the life of the investment) that Financial Holdings made on the 750 Sabo common shares sold on June 15. Explain how and when it was recognized on the income statement.

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Security Sabo common shares PYK $1.50 preferred shares Total Quantity 1,000 2,000 Cost $15,000 24,000 $39,000 Market Value $13,500 24,500 $38,000