FKG Incorporated carries the following debt investments on its books at December $31,2023,$ and December $31,2024.$ All securities

were purchased during $2023.$

Trading Securities:

Available$-$for$-$Sale Securities:

Required:

Prepare the necessary journal entries for FKG on December $31,2023,$ and December $31,2024.$

$2$ & $3.$ What net effect would the valuation of these debt investments have on $2023$ and $2024$ net income?