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10 points) At December 31, 2015, the trading securities for Trade, Inc. are as follows:

Security

Cost

Fair Value 12/31/14

	A	$85,500	$98,000
	B	146,500	140,000
	C	28,500	26,000

Saddle should report the following amount related to the securities in its 2014 income statement:

Select one:

Select one:

a. $9,000 unrealized loss.

b. $3,500 realized gain.

c. $12,500 gain.

d. $3,500 unrealized gain.

(10 points) Tempest Co. purchased 50, 9% Urich Company bonds for $45,000 cash. Interest is payable semiannually on July 1 and January 1. If 24 of the securities are sold on July 1 for $64,000, the entry would include a credit to Gain on Sale of Debt Investments for

Select one:

a. $42,092

b. $42,400

c. $42,589

d. $42,550