Fox Company incurred the following transactions relating to the common stock of NOP Company: July 10, 2001

Fox Company incurred the following transactions relating to the common stock of NOP Company:

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July 10, 2001 Sep. 29, 2002 Aug. 17, 2003 Purchased 10,000 shares at $45 per share. Sold 2,000 shares at $51 per share. Sold 2,500 shares at $33 per share. The end-of-year market prices for the shares were as follows: Dec. 31, 2001 Dec. 31, 2002 Dec. 31, 2003 $47 per share $39 per share $31 per share Fox Company classifies the NOP stock as trading securities. 1. Determine the amount of (a) realized gain or loss and (b) unrealized gain or loss to be re- ported on the income statement each year relating to the NOP stock. 2. How would your answer to (1) change if the securities were classified as available-for-sale? Explain.