Perez Company began operations in 2009. Since then, it has reported the following gains and losses for its investments in trading securities on the income statement: 2009 2010 2011 Gains (losses) from sale of trading securities $ 15,000 $(20,000) $ 14,000 Unrealized holding losses on valuation of trading securities (25,000) (30,000) Unrealized holding gain on valuation of trading securities 10,000 At January 1, 2012, Perez owned the following trading securities: Cost BKD Common (15,000 shares) $450,000 LRF Preferred (2,000 shares) 210,000 Drake Convertible bonds (100 bonds) 115,000 During 2012, the following events occurred: 1. Sold 5,000 shares of BKD for $170,000. 2. Acquired 1,000 shares of Horton Common for $40 per share. Brokerage commissions totaled $1,000. At 12/31/12, the fair values for Perez's trading securities were: BKD Common, $28 per share LRF Preferred, $110 per share Drake Bonds, $1,020 per bond Horton Common, $42 per share Instructions (a) Prepare a schedule which shows the balance in the Securities Fair Value Adjustment (Trading) at December 31, 2011 (after the adjusting entry for 2011 is made). (b) Prepare a schedule which shows the aggregate cost and fair values for Perez's trading securities portfolio at 12/31/12. (c) Prepare the necessary adjusting entry based upon your analysis in (b) above