Use the following information to answer questions 6-12 below:

On January 1, Y1, XYZ bought a $100,000, 10%, 5-year bond of D. Corp. The effective interest rate was 8%. Interest is payable on June 30 and December 31.

At December 31, Y1, the market value of the bonds was $109,000. At December 31, Y2, the market value of the bonds was $107,000.

As of December 31, Y2, determine the balance sheet presentation of the investment (each component of the presentation is asked individually through questions 6, 7, and 8). Assume the investment was classified as either a trading security or available-for-sale security.

Investment?

Investment Security Fair Value Adjustment?

Net Investment?

Determine the impact on Y2 Net Income, assuming the security was classified as an available-for-sale security?

Determine the impact on Y2 Net Income, assuming the security was classified as a trading security

Determine the impact on Y2 Total Stockholder's Equity, assuming the security was classified as a trading security

Determine the impact on Y2 Total Stockholder's Equity, assuming the security was classified as an available-for-sale security