Lorien Technologies, Inc., purchased the following securities during 2011:

The following transactions occurred during 2012:
a. On January 1, 2012, Lorien purchased Security E for $12,000. Security E is classified as available-for-sale.
b. On March 23, 2012, Security B was sold for $4,700.
c. On July 23, 2012, Security C was sold for $19,500.
The remaining securities had the following market values as of December 31, 2012:
Security Market Value
A $ 4,500
D 5,000
E 13,000
Required:
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 2012.
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 2012. Which amounts will appear on the incomestatement?

Transcribed Image Text:

Market Value (12/31/11) Security A. Classification Trading Trading Available-for-sale Available-for-sale Cost S 4,000 $ 5,000 10,000 10,000 6,000 3,500