On October 10, 2017, Marcus Inc. buys short-term equity securities with an original cost of $100,000. On December 31, 2017, they have a market value of $80,000. On March 9, 2018, those securities are sold for $120,000. Determine the gains or losses in 2017 and 2018 associated with these securities that will be reported on the income statement. Indicate whether the gains or losses are realized or unrealized.

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The Answer of On October 10, 2017, Marcus Inc. buys short-term equity securities with an original cost of $100,000. On December 31, 2017, they have a market value of $80,000. On March 9, 2018, those securities are sold for $120,000. Determine the gains or losses in 2017 and 2018 associated with these securities that will be reported on the income statement. Indicate whether the gains or losses are realized or unrealized.