On November 11, 1997, Wadsworth Company purchased 20 shares of ZZZ for $8 per share. Wadsworth held the investment for the remainder of 1997, and as of December 31 the per share market value of ZZZ had risen to $10. During 1998 Wadsworth sold 10 shares of ZZZ for $9 each, and at the end of 1998 the per share market price of the remaining 10 ten shares was $12. During 1999 the remaining shares of ZZZ were sold for $14 each. Assume that Wadsworth held no other equity investments during this time period. REQUIRED:

a. Complete the following chart. The first column assumes that the investment was classified as trading securities; the second column assumes that the investment was classified as available-for-sale securities. Trading Available-for-Sale 1997 income 12/31/97 balance sheet investment value 1998 income 12/31/98 balance sheet investment value 1999 income Total income (‘97 + ‘98 + ‘99)

b. Comment on the differences.