Presented below is information related to the purchases of common stock by Sarasota Company during 2017.

		Cost (at purchase date)		Fair Value (at December 31)
Investment in Arroyo Company stock		$109,000		$89,000
Investment in Lee Corporation stock		232,000		284,000
Investment in Woods Inc. stock		178,000		187,000
Total		$519,000		$560,000

In addition, assume that the investment in the Woods Inc. stock was sold during 2018 for $194,000. At December 31, 2018, the following information relates to its two remaining investments of common stock.

		Cost (at purchase date)		Fair Value (at December 31)
Investment in Arroyo Company stock		$109,000		$151,000
Investment in Lee Corporation stock		232,000		294,000
Total		$341,000		$445,000

Net income before any security gains and losses for 2018 was $994,000.

(a) Compute the amount of net income or net loss that Sarasota should report for 2018, taking into consideration Sarasotas security transactions for 2018, assuming Sarasota did not select the fair value option for investments in the Lee and Woods corporations.

Net income or net loss that Sarasota should report for 2018

(b) Prepare the journal entry to record unrealized gain or loss related to the investment in Arroyo Company stock at December 31, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)