At December 31, 2014, the fair value of non-trading securities is $41,300 and the cost is $39,800. At January 1, 2014, there was a credit balance of $900 in the Fair Value Adjustment—Non-Trading account.

The required adjusting entry would be:

(a) Debit Fair Value Adjustment—Non-Trading for $1,500 and credit Unrealized Gain or Loss—Equity for $1,500.

(b) Debit Fair Value Adjustment—Non-Trading for $600 and credit Unrealized Gain or Loss—Equity for $600.

(c) Debit Fair Value Adjustment—Non-Trading for $2,400 and credit Unrealized Gain or Loss—Equity for $2,400.

(d) Debit Unrealized Gain or Loss—Equity for $2,400 and credit Fair Value Adjustment—Non-Trading for $2,400.