The following information was taken from the 1996 annual report of Orleans Enterprises. 1996 1995 Trading securities $25,440 $27,000 402 Part 3 Assets: A Closer Look Related Footnote: The 1996 and 1995 balances in the trading securities account consist of 1,600 and 1,800 equity shares of Atwater Company, respectively. During 1996, in the only transaction related to these securities, 200 shares were sold for $15.50 each. REQUIRED:

a. Compute the 1996 income effect related to the company’s investment in Atwater. Divide the effect into its realized and unrealized components.

b. Repeat

(a) assuming that the securities were classified as available-for-sale and that Orleans’ first investment in these securities occurred on December 31, 1995.