Assume these are the only securities Martin owns and that the company accounts for them as trading securities. How will changes in the prices of the securities affect net income? What would the effect on net income be if the Nichols Inc. securities were worth $463,000 at year-end (instead of $558,000) **Securities Value Table**This table presents information on the cost and 2019 year-end value for investments in three different securities.| Security | Cost | 2019 Year-End Value ||--------------|----------|---------------------|| Tindall Corp. | $205,000 | $228,000 || Louis Corp. | $380,000 | $412,000 || Nichols Inc. | $530,000 | $558,000 |- **Tindall Corp.** had an initial investment cost of $205,000, which increased to a year-end value of $228,000.- **Louis Corp.** started with a cost of $380,000 and ended the year with a value of $412,000.- **Nichols Inc.** had a starting cost of $530,000 and a year-end value of $558,000.This table provides insights into how each investment appreciated over the year.

Net income is the income which is chargeable to tax for income tax purposes. In the instant case, data regarding security, cost and year end value is givenCompany Cost End Value Gain (loss) Tindall Corp $205,000 $228,000 $23,000 Louis Corp $380,000 $412,000 $32,000 Nichols Inc. $530,000 $558,000 $28,000 Total $ 83,000 The change in price will result in gain of $83,000. Such gain would appear in Income statement for the pertinent period Company Cost End Value Gain (loss) Tindall Corp $205,000 $228,000 $23,000 Louis Corp $380,000 $412,000 $32,000 Nichols Inc. $530,000 $463,000 (-) $67,000 Total (-) 12,000 The change in price will result in loss of $12,000 in net income