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	?	?

6.

Kim Company bought 35% of the shares of Phelps, Inc., at the start of 2018. Kim paid $27 million for the shares. Thirty five percent of the book value of Phelpss net assets is $20 million, and the difference of $7 million is due to land that Phelps owns that has appreciated in value. During 2018, Phelps reported net income of $4 million and paid a cash dividend of $3.0 million.

What amount does Kim carry the Phelps investment on its balance sheet as of December 31, 2018? (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)

Amount of investment reported in Kim balance sheet: ? million