During 2010 jat company purchased trading securities as a

Reference no: EM13568833

During 2010, JAT Company purchased trading securities as a short-term investment. The costs of the securities and their market values on December 31, 2012, are listed below.

Security Cost Market Value
A $400,000 $200,000
B 200,000 225,000
C 500,000 600,000

JAT had no trading securities in the years before 2012. Before any adjustments related to these trading securities, JAT had net income of $900,000 in 2012.

1.What is net income after making any necessary trading security adjustments?

2.What would net income be if the market value of Security A were $50,000?

Reference no: EM13568833

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