Use the following information on a company's investments in debt securities. The company's accounting year...
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Accounting
Use the following information on a company's investments in debt securities. The company's accounting year ends December 31.
| Investment | Date of Acquisition | Cost | Fair Value 12/31/19 | Date Sold | Selling Price |
| Colt Company bonds | 9/20/19 | $38,000 | $37,000 | 2/10/20 | $42,000 |
| Dana Company bonds | 10/2/19 | 14,000 | 14,200 | 1/17/20 | 13,000 |
1. If the above debt investments are categorized as trading securities, what amount is reported for gain or loss on securities in 2019 income?
2. If the above debt investments are categorized as trading securities, what amount is reported for gain or loss on securities in 2020 income?
3. If the above investments are categorized as available-for-sale securities, what amount is reported for gain or loss on securities in 2019 income?
4. If the above investments are categorized as available-for-sale securities, what amount is reported as gain or loss on securities in 2020 income?
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