Loreal-Amerfcan Corporation purchased several marketable securities during 2013. At December 31, 2013, the company had the investments in common stock listed below. None was held at the last reporting date, December 31, 2012, and all are considered securities available-for-sale. Cost Fair value Unrealized holding Gain(Loss) Shprt Term: Blair Inc 480,000 405,000 -75,000 ANC Corporation 450,000 480,000 30,000 Totals: 930,000 885,000 -45,000 Long term: Drake Corporation 480,000 560,000 80,000 Aaron Industries 720,000 660,000 (60,000) Totals: 1,200,000 1,220,000 20,000 Required:
1) Prepare the appropriate adjusting entry at December 31, 2013. 2) What amounts would be reported in the income statement at December 31, 2013, as a result of the adjusting entry?