The following information is available for Kinney plc at December 31, 2019, regarding its investments.

Instructions
a. Prepare the adjusting entry (if any) for 2019, assuming the investments are classified as trading.
b. Prepare the adjusting entry (if any) for 2019, assuming the investments are classified as non-trading.
c. Discuss how the amounts reported in the financial statements are affected by the entries in (a) and (b).

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Investments 3,000 ordinary shares of Petty Corporation 1,000 preference shares of Dowe Incorporated Cost Fair Value £40,000 £46,000 25,000 22,000 £65,000 £68,000