Question: In 2016, a company purchases securities at a cost of $450,000. Their year-end value is $475,000. In 2017, there securities are sold for $460,000 and new securities are purchased for $610,000. At the end of 2017, the securities have not yet been sold, and have a value of $580,000.
Required: Prepare the journal entries to record the above information for 2016 and 2017, assuming that:
a) The securities are categorized as trading securities
b) The securities are categorized as AFS securities, and the securities on hand at the end of 2017 are considered (1) not impaired or (2) impaired.