Investing in Available-for-Sale Securities Security Corporation purchased 200 shares of the preferred stock of Brown Company for $70 each on January 7, 2001. It also purchased 100 shares of Blue Corporation common shares for $30 per share on that date. At December 31, 2001, the shares of Brown preferred were selling at $74 and the common shares of Blue were selling at $14. Security Corporation considers the shares to be part of its available-for-sale securities portfolio.

a. At what amount will the investments be reported in the December 31, 2001, balance sheet?

b. Will any other balance sheet or income statement accounts be affected by the accounting treatment of these securities?

If so, which accounts, and what will be the effect?