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Millco Inc. has a portfolio of debt securities which is categorized as available for sale. Millco does not use fair value option. Unrealized loss for
Millco Inc. has a portfolio of debt securities which is categorized as available for sale. Millco does not use fair value option. Unrealized loss for the year 1 was $1,300. The cash received from selling one of the securities from amongst the portfolio was $15,000, after paying for the brokerage of $2,000. The cost of the securities was $17,000.
What amount of realized gain or loss should be recognized in the statement of income for year 2?
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