On September 1, Duggan Company purchased 100 common shares of Green Company for $100 each and 200 common shares of White Company for $50 each. On December 31, the common shares of Green were selling at $95 and the common shares of White were selling at $55. Duggan considers the shares to be short-term, held-for-trading investments.
Required:
a. At what amount will these investments be reported on the December 31 balance sheet?
b. What other balance sheet or income statement account will be affected by the accounting treatment of these securities? What will the effect be?