Burr Corporation began operations on January 1, 2007, and at December 31, 2007, Burr had the following investment portfolio of marketable equity securities:
In current assets In noncurrent assets
Aggregate cost $185,000 $275,000
Aggregate market value 150,000 225,000
Net unrealized loss $ 35,000 $ 50,000
All the declines are judged to be temporary. Valuation allowances at December 31, 2007 should be established with corresponding charges against:
Income Stockholders’ equity
a. $ -0- $85,000
b. 35,000 50,000
c. 50,000 35,000
d. 85,000 -0-