On December 31, 2017, Short-Term Equity Securities Held as a Passive

question 35

Essay

On December 31, 2017, short-term equity securities held as a passive investment, with an original cost of $100,000, have a market value of $110,000. On January 11, 2018, the securities are sold for $130,000. Determine the gains or losses in 2017 and 2018 associated with these securities that must be reported on the income statements. Indicate whether the gains or losses are realized or unrealized.

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Definitions:

Intense "Rush"

A sudden and powerful sensation or emotion, often associated with excitement, adrenaline, or the effects of certain substances.

Harm Reduction

A public health strategy aimed at minimizing the negative health, social, and legal impacts associated with drug use, sexual activity, and other risky behaviors.

Drug Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.

Unconditional Positive Regard

A concept in client-centered therapy that emphasizes the importance of accepting and respecting clients without judgment or conditions.