On its January l, 2013, balance sheet, Ericsson Corporation reports the following balances related to its investments:
Trading investments ..................................................................... $ 56,000
AFS investments .......................................................................... 160,000
Accumulated other comprehensive income
(unrealized losses on AFS investments) ......................................... 30,000 debit
During 2013, Ericsson sold for $43,000 trading securities carried at $40,000 on its beginning balance sheet. It sold the remaining trading securities held at the beginning of the year for $20,000. It purchased trading securities costing $60,000; their fair value at the end of 2013 was $52,000. Ericsson sold for $52,000 AFS securities carried at $50,000. with unrealized gains of $1,000 included in the beginning AOCI balance. It did not purchase any new AFS securities. At the end of 2013, AFS securities with a book value of $85,000 have a fair value of $88,000. It is determined that AFS securities with a book value of $25,000 and unrealized losses of $5,000 have a fair value of $10,000; this decline in value is determined to be other-than-temporary.
Required
Prepare journal entries to record the events of 2013, and determine the balances related to trading and AFS securities reported on Ericsson's income statement and balance sheet.