Calculate net gains on trading securities reported

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Question - Below are excerpts from Gremlin Beverage Corporation's 2019 financial statements

Balance sheet Dec 31 2019 2018

Investment in trading securities- 8,500 11,000

Investments in AFS securities 16,000 15,000

2019 Statement of comprehensive income.

Net increase in unrealized gains on AFS securities held at year end- 2,000.

Reclassification of net unrealized gains included in net income on AFS securities sold- (2,100).

2019 Statement of cash flows

Investing activities

Purchasing of trading securities-1,000

Sales of trading securities- 4,000

Purchase of AFS securities- 3,600

Sales of AFS securities- 6,000

For simplicity, assume the AFS securities were sold at the beginning of the year. All securities were acquired at par value and no impairment is reported

Required:

Calculate the following amounts for 2019:

A) Net gains on trading securities reported in 2019 income.

B) Net gains on AFS securities reported in 2019 income.

C) Original cost of AFS securities sold in 2019.

Reference no: EM132437325

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