14.At December 31, 2018, Jeter Corporation had the following debt securities that were purchased during 2018, its first year of operation:

Fair Unrealized

Cost Value Gain (Loss)

Trading Securities:

Security A $ 85,000 $ 65,000 $(20,000)

Security B 15,000 20,000 5,000

Totals $100,000 $ 85,000 $(15,000)

Available-for-Sale Securities:

Security Y $ 70,000 $ 80,000 $ 10,000

Security Z 85,000 55,000 (30,000)

Totals $155,000 $135,000 $(20,000)

All market declines are considered temporary. Fair value adjustments at December 31, 2018 should be established with a corresponding charge against

Income Stockholders' Equity

a. $40,000 $ 0

b. $25,000 $30,000

c. $15,000 $20,000

d. $15,000 $ 0

19.On January 1, 2014, Trent Company granted Dick Williams, an employee, an option to buy 400 shares of Trent Co. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $8,000. Williams exercised his option on September 1, 2014, and sold his 400 shares on December 1, 2014. Quoted market prices of Trent Co. stock during 2014 were:

January 1 $30 per share

September 1 $36 per share

December 1 $40 per share

The service period is for two years beginning January 1, 2014. As a result of the option granted to Williams, using the fair value method, Trent should recognize compensation expense for 2014 on its books in the amount of

a. $4,000.

b. $3,600.

c. $1,800.

d. $0.