At December 31, 2002, the trading securities for Yanu, Inc. are as follows.
Security Cost Fair Value
A $17,500 $16,000
B 12,500 14,000
C 23,000 19,000
$53,000 $49,000
Instructions:
(1) Prepare the adjusting entry at December 31, 2002, to report the securities at fair value.
(2) Show the balance sheet and income statement presentation at December 31, 2002, after adjustment to fair value.