During 2001, Litten Company purchased trading securities as a short-term investment. The costs of the securities and their market values on December 31, 2003, are listed below:

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Security Cost A $ 65,000 100,000 220,000 B C Market Value (December 31, 2003) $ 81,000 54,000 226,000 Litten had no trading securities in the years before 2003. Before any adjustments related to these trading securities, Litten had net income of $300,000 in 2003. 1. What is net income (ignoring income taxes) after making any necessary trading security adjustments? 2. What would net income be if the market value of Security B were $95,000?