E13-12 McGee Company has the following data at December 31, 2008.

Price: $1.99


McGee Company has the following data at December 31, 2008.

Securities Cost Fair value Trading  120,000  124,000 Non-trading  100,000  94,000

The available-for-sale securities are held as a long-term investment.

Instructions
(a) Prepare the adjusting entries to report each class of securities at fair value.
(b) Indicate the statement presentation of each class of securities and the related unrealized gain (loss) accounts.