On December 31, 2017, short-term equity securities held as a passive investment, with an original cost of $100,000, have a market value of $110,000. On January 11, 2018, the securities are sold for $130,000. Determine the gains or losses in 2017 and 2018 associated with these securities that must be reported on the income statements. Indicate whether the gains or losses are realized or unrealized.

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The Answer of On December 31, 2017, short-term equity securities held as a passive investment, with an original cost of $100,000, have a market value of $110,000. On January 11, 2018, the securities are sold for $130,000. Determine the gains or losses in 2017 and 2018 associated with these securities that must be reported on the income statements. Indicate whether the gains or losses are realized or unrealized.

On December 31, 2017, Short-Term Equity Securities Held as a Passive