The investments of Charger Inc. include an investment of trading securities of Raiders Inc. purchased on February $24,20$Y$7,$ for $$506,000.$ The fair value of the securities on December $31,20$Y$7,$ is $$667,000.$

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a$.$ Journalize the entries for the February $24$ purchase and the adjustment to fair value on December $31,20$Y$7.$ If an amount box does not require an entry, leave it blank.

$20$Y$7$ Feb. $24$

$20$Y$7$ Dec. $31$

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b$.$ How is a unrealized gain or loss for trading investments reported on the financial statements?

The unrealized gain or unrealized loss on trading investments is reported on the

$($or a separate item if significant$).$ Unrealized losses would be

in determining net income, while unrealized gains would be

in determining net income..

c$.$ If the Raiders Inc. securities had been classified as available$-$for$-$sale securities$,$ how would the investment be reported on the financial statements?

The unrealized gain on available$-$for$-$sale investments would be reported as

$.$ The debit balance of Valuation Allowance for Available$-$for$-$Sale Investments would be

to the balance of the investments account of $$506,000$ to report the fair value of $$667,000$ on the

$.$