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On January 1, 2013, Nana Company paid $100,000 for 6,800 shares of Papa Company common stock. These securities were classified as trading securities. The ownership

On January 1, 2013, Nana Company paid $100,000 for 6,800 shares of Papa Company common stock. These securities were classified as trading securities. The ownership in Papa Company is 10%. Papa reported net income of $64,000 for the year ended December 31, 2013. The fair value of the Papa stock on that date was $62 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2013?

$421,600.

$346,600.

$361,600.

$376,600.

Goofy Inc. bought 15,000 shares of Crazy Co.'s stock for $209,000 on May 5, 2012, and classified the stock as available for sale. The market value of the stock declined to $125,000 by December 31, 2012. Goofy reclassified this investment as trading securities in December of 2013 when the market value had risen to $156,000. What effect on 2013 income should be reported by Goofy for the Crazy Co. shares?

$31,000 net gain.
$53,000 net loss.
$84,000 net loss.
$0.

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