(Identifying and calculating holding gains and losses, LO 5) For each of the following situations indicate whether the event is a gain or a loss and whether the gain or loss is realized or unrealized.

a. In 1989, a land development company purchased raw land for later development for $5,000,000. In 2002 development of the land had not yet begun. The company had recently received an offer for the land of $14,000,000.

b. In November 2003 a jeweller purchased $10,000 of gold for making jewellery. In May 2004, when the jeweller sold the jewellery made from the gold, the same amount of gold would have cost $9,000.

c. In March 2004 a company purchased a large supply of lumber for $200,000. By the end of the year the market price of the lumber had doubled because of high demand in the United States.