3. S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $877,000 and sold the bonds on January 3, 2019, for $882,500. At December 31, the bonds had a fair value of $874,000. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds in 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4. S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $965,000 and sold the bonds on January 3, 2019, for $968,500. At December 31, the bonds had a fair value of $960,000, and S&L has the intent and ability to hold the investment until fair value recovers.

What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment?

Pretax amount
2018	?	?
2019	?	?