Question 28:

1. Could you give us with a list all trading securities, providing the cost and market value of each at December 31, 20X3 and 31^st December, 20X4?

Our investments in trading securities at 31^st December, 20X4 are as given:           

                                                  Number of Shares                Cost            Market Value

General Electric                                200                               $15,000          $16,400

General Motors                               1,225                                 7,000               9,720

Our investments in trading securities at 31^st December, 20X3 were as given:       

                                              Number of Shares                     Cost              Market Value

General Electric                               200                                $15,000                $17,240

General Mills                                   300                                  18,000                   19,400

General Motors                                 1,225                              7,000                     10,100

General Mills, which cost $18,000, was sold for $20,100, net of commissions.

2. Since you still own General Motors and General Electric, could these be reclassified to long-term securities?

Well, our intent in holding these securities is still to sell them as soon as probable for a profit, so we think they qualify as trading securities. The market is just not cooperating with us at the moment.