Appendix 10B: Investments.

During 2007, Nike has invested \(\$ 200,000\) of extra cash in securities. Of the total amount invested, \(\$ 75,000\) was invested in bonds that Nike plans to hold until maturity (the bonds were issued at par value); \(\$ 65,000\) was invested in various equity securities that Nike plans to hold for an indefinite period of time; and \(\$ 60,000\) was invested in the stock of various companies that Nike intends to trade to make a short-term profit. At the end of the year, the market value of the held-to-maturity securities was \(\$ 80,000\); the market value of the trading securities was \(\$ 75,000\); and the market value of the available-for-sale securities was \(\$ 55,000\). Use the accounting equation to record all adjustments required at year-end, and indicate how the effects of each group of securities will be reported on the financial statements.