Lorien Technologies, Inc., purchased the following securities during 2002:
|
Market Value |
|||
|
Security |
Classification |
Cost |
(12/31/02) |
|
A |
Trading |
$ 5,000 |
$ 4,000 |
|
B |
Trading |
7,000 |
10,000 |
|
C |
Available for sale |
10,000 |
8,000 |
|
D |
Available for sale |
6,000 |
3,500 |
The following transactions occurred during 2003:
a. On January 1, 2003, Lorien purchased Security E for $12,000. Security E is classified as available for sale.
b. On March 23, 2003, Security B was sold for $4,700.
c. On July 23, 2003, Security C was sold for $19,500.
The remaining securities had the following market values as of December 31, 2003:
|
Market |
|
|
Security |
Value |
|
A |
$ 4,500 |
|
D |
5,000 |
|
E |
13,000 |
1. Determine the amount of (a) realized gain or loss and (b) unrealized gain or loss to be reported relating to Lorien’s trading securities for 2003.
2. Determine the amount of (a) realized gain or loss and (b) unrealized gain or loss to be reported relating to Lorien’s available for sale securities for 2003. Which amounts will appear on the income statement?