The following information is available for JKL Company at December 31, 2014, regarding its investments. Securities Cost Fair Value 500 shares of A Corporation common stock $ 25,000 $ 40,000 7,000 shares of B Corporation preferred stock 650,000 620,000 Total $675,000 $660,000 The company did not have any investments prior to 2014. (a) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as trading.

(b) Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as availableforsale

. (c) Discuss how the amounts reported in the financial statements are affected by the entries in (a) and (b)

Please show all of your calculations.