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

question 20

Essay

On December 31, 2010, trading securities with an original cost of $45,000 have a market value of $47,000. On January 5, 2011, those trading securities are sold for $41,000. Determine the gains or losses in 2010 and 2011 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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Definitions:

Suicide Risk

The likelihood that an individual will attempt to take their own life, often assessed in mental health settings to provide appropriate interventions.

Getting Even

implies taking action to retaliate or seek revenge, aiming to restore justice or balance after feeling wronged.

Defensive Coping

A psychological strategy used to protect oneself from perceived threats or stresses, often by denying or avoiding reality.

Chronic Low Self-esteem

A long-term feeling of inadequacy or lack of self-worth that can negatively affect one's mental health, leading to depression or anxiety.