Effect of various methods of accounting for marketable equity securities. Information related to marketable equity securities of Callahan Corporation appears on the next page.

a. Assume that these securities are trading securities Indicate the nature and amount of income recognized during 2008 and 2009 and the presentation of information about these securities on the balance sheet on December 31, 2008 and 2009.
b. Repeat part a assuming that these securities are securities available for sale held as temporary investments of excess cash by Callahan Corporation.
c. Repeat part a assuming that these securities represent long-term investments by Callahan Corporation held as securities available for sale.
d. Compute the combined income for 2008 and 2009 under each of the three treatments of these securities in parts a, b, and c. Why do the combined income amounts differ? Will total shareholders' equity differ? Why or whynot?

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Selling Price Dividends Received During 2009 Fair Value on Dec. 31, 2009 Fair Value Acquisition Cost in 2008 Dividends Received on Dec. 31, in 2009 During 2008 Security 2008 $ B00 1,500 1,000 $ 200 $14,500 $18,000 25,000 $16,000 24,000 500 1,500 26,000 12,000 14,000 $54,000 $17,000 $2,200 $55,000 $3,300 $40,500 $17,000