Uttinger Company has the following data at December 31, 2015.

E12-12 Uttinger Company has the following data at December 31, 2015.

Securities                     Cost                 Fair Value

Trading                                    $120,000         $126,000

Available-for-sale        100,000                       96,000

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.