1. FKG Inc. carries the following investment in debt securities on its books at December 31, 2015 and December 31, 2016. All available-for-sale securities were purchased during 2015, and all trading securities were purchased during 2016. There were no sales of securities from either portfolio during 2015 and 2016. Ignore income taxes.

Trading Securities (classified as current assets):

Company	Cost	FMV 12/31/2015	FMV 12/31/2016
A company	$25,000	N/A	$20,000
B Compan	$13,000	N/A	$15,000
C compan	$35,000	N/A	$25,000

available for sale securities (classified as non current assets):

company	cost	FMV 12/31/15	FMV 12/31/16
X company	210,000	230,000	250,000
Y company	50,000	60,000	80,000

Answer the following questions about these investment portfolios.

a) What dollar value should the company recognize on its 12/31/2016 balance sheet for the Trading Securities portfolio? Name the measurement attribute required by GAAP, and explain why this measurement attribute is relevant for Trading Securities.

b) What dollar value should the company recognize on its 12/31/2016 balance sheet for the Available for Sale Securities portfolio? Name the measurement attribute required by GAAP, and explain why this measurement attribute is relevant for Available for Sale Securities.

c) Prepare the journal entries that FKG, Inc. would make for the year ended December 31, 2016 related to these Trading and Available for Sale portfolios. Ignore income taxes.

d) Complete the following items for FKG, Inc. Indicate any debit balances or losses with parentheses.

12/31/2015 Accumulated Other Comprehensive Income ______________________

2016 Other Comprehensive Income ____________________

12/31/2016 Accumulated Other Comprehensive Income ______________________________

2016 Unrealized holding gains or losses reported in Net Income ____________________

2016 Comprehensive Income (from Trading and AFS investments)____________________