Question: Information related to Jones Company's portfolio of trading securities at December 31, 2014, follows:
Aggregate cost of securities $340,000
Gross unrealized gains 8,000
Gross unrealized losses 52,000
Jones reported a $10,000 credit balance in its Fair value adjustment-Trading securities account in its December 31, 2013 (prior year), balance sheet. Assume that it sold no trading securities during 2013 or 2014.
Required: 1. How much should Jones report as unrealized gain or loss on its 2014 income statement?
2. Prepare the journal entry that Jones would make to record the 2014 fair value adjustment to its trading portfolio.