During 2015, Litten Company purchased trading securities as a short-term investment. The costs of the securities and their fair values on December 31, 2015, follow:

At the beginning of 2015, Litten had a zero balance in the market adjustment-trading securities account. Before any adjustments related to these trading securities, Litten had net income of $300,000.
1. What is net income after making any necessary trading security adjustments? (Ignore income taxes.)
2. What would net income be if the fair value of security B were $95,000?

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Fair Value, Dec. 31, 2015 Security Cost 65,000 100,000 220,000 75,000 54,000 226,000