On July 31, Potter Co. purchased 2,000 shares of GigaTech stock for $16,000. GigaTech has 100,000 shares currently outstanding. This is the company’s first and only stock investment. On October 31, which is Potter’s year-end, the stock had a fair value of $20,000. Potter should record a:

a. Debit to Unrealized Loss-Income for $4,000.
b. Credit to Unrealized Gain-Income for $4,000.
c. Credit to Investment Revenue for $4,000.
d. Debit to Unrealized Gain-Equity for $4,000.
e. Credit to Fair Value Adjustment-Stock for $4,000.

Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.