Marketable Securities

6 Months Ended

Jun. 30, 2011

Note 3 — Marketable Securities

Securities investments that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and recorded at amortized cost. Securities investments bought expressly for the purpose of selling in the near term are classified as trading securities and are measured at fair value with unrealized gains and losses reported in earnings. Securities investments not classified as either held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value in marketable securities in the accompanying balance sheets, with the change in fair value during the period excluded from earnings and recorded net of tax as a component of other comprehensive income. Realized gains and losses, and declines in value judged to be other than temporary, are in the accompanying statements of income. The Company did not hold any held-to-maturity or trading securities as of June 30, 2011 or December 31, 2010.

The following is a summary of available-for-sale securities at:


	June 30, 2011
	Investment		Unrealized		Estimated
	at cost		Gains		Fair Value
Common Stock	$	199,500	$	106,738	$	306,238


	December 31, 2010
	Investment		Unrealized		Estimated
	at cost		Gains		Fair Value
Common Stock	$	199,500	$	75,450	$	274,950

Unrealized gains on available-for-sale securities of $66,211 and $46,590, respectively (net of $40,527 and $28,860 in taxes) was included in accumulated other comprehensive income in the accompanying balance sheets at June 30, 2011 and December 31, 2010, respectively.

The gross realized gains are summarized below:


					Gross
Three Months Ended	Sales				Realized
June 30,	Proceeds		Cost		Gains
2011	$	—	$	—	$	—
2010	$	2,051,981	$	1,969,446	$	82,535


					Gross
Six Months Ended	Sales				Realized
June 30,	Proceeds		Cost		Gains
2011	$	—	$	—	$	—
2010	$	2,353,878	$	2,244,734	$	109,144

As of June 30, 2011 and December 31, 2010, the Company did not hold any securities in an unrealized loss position.

The fair value of cash and cash equivalents, notes and accounts receivable and notes and accounts payable are not materially different from their carrying amounts. The fair values of marketable securities are estimated based on closing share price on the quoted market price for those investments. Cost basis is determined by specific identification of securities sold.