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On December 31, 2010, Trading Securities with an Original Cost

question 57

Essay

On December 31, 2010, trading securities with an original cost of $45,000 have a market value of $47,000. On January 11, 2011, those trading securities are sold for $51,000. Determine the gains or losses in 2009 and 2010 associated with these trading securities. Clearly label whether the gains or losses are realized or unrealized. Name the financial statement on which each is reported.


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