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BE 1 2 6 Fair value option; available - for - sale securities; financial statement effects LO 1 2 8 S&L Financial buys and sells

BE 126 Fair value option; available-for-sale securities; financial statement effects LO128 S&L Financial buys and sells securities that it typically classifies as available-for-sale. Assume that on December 27,2024, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3,2025, for $880,000. At December 31, the bonds had a fair value of $873,000. When it purchased the Coca-Cola bonds, S&L Financial decided to elect the fair value option for this investment. What pretax amounts did S&L include in its 2024 and 2025 net income as a result of this investment (ignoring interest)?

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