Live Tree also acquired 100 shares of Google stock (GOOG) in October 2007 for $707 / share. GOOG was trading at $691 / share at 12/31/07 and at $308 / share at 12/31/08. Live Tree continued to hold the shares until early December 2009 when it sold all 400 shares for $620 / share.

a. Assuming that the investment is treated as a trading security, what is the increase (decrease) in Net Income for the year ended 12/31/09 resulting from the ownership & sale of the Google stock? Be sure to indicate Increase or Decrease along with your $ amount.

b. Assuming that the investment is treated as an available-for-sale security, what is the increase (decrease) in Total Equity for the year ended 12/31/09 resulting from the ownership & sale of the Google stock? Be sure to indicate Increase or Decrease along with your $ amount.

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