Reporting and Interpreting Stock Investment Performance Kasznik Company began operations on June 15 of the current calendar year and, by year-end (December 31), had made six stock investments. Year-end information on these stock investments follows.

December 31	Cost or Equity Basis (as appropriate)	Year-End Fair Value	Market Classification
Barth, Inc.	$ 68,000	$ 65,300	Trading
Foster, Inc.	162,500	160,000	Trading
McNichols, Inc.	197,000	192,000	Available-for-sale
Patell, Inc.	157,000	154,700	Available-for-sale
Ertimur, Inc.	100,000	102,400	Equity method
Soliman, Inc.	136,000	133,200	Equity method

HINT: Use negative signs in any answers that are losses. (a) What does Kasznik's balance sheet report for trading stock investments at December 31? (b) What does Kasznik's balance sheet report for available-for-sale investments at December 31?

(c) What does Kasznik's balance sheet report for equity method investments at December 31? (d) What total amount of unrealized holding gains or unrealized holding losses related to investments appear in Kasznik's income statement? (e) What total amount of unrealized holding gains or unrealized holding losses related to investments appear in the stockholders' equity section of Kasnik's December 31, balance sheet? Amount included in accumulated other comprehensive income? Amount included in retained earnings? (f) What total amount of fair-value adjustment to investments appears in the December 31, balance sheet? Which category of investments does the fair-value adjustment relate to?

A. The fair value adjustment relates to trading investments only and is recognized in current income.

B. The fair value adjustment relates to both trading and available-for-sale investments.

C. The fair value adjustment relates to available-for-sale investments only.

D. Investments are carried at historical cost. There is no fair value adjustment.