Trading securities were sold on January 3, 2018, for $65,000. Those securities were purchased for $52,000 on November 21, 2017, and they had a fair value on December 31, 2017, of $57,000. The entry to record the sale would include a

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The entry to record the sale of trading securities would include a credit to Gain on Sale of Trading Securities for the difference between the sale price ($65,000) and the purchase price ($52,000), which is $13,000. However, since the securities had already been marked to market at a fair value of $57,000 on December 31, 2017, the gain realized on the sale would be the difference between the sale price and the fair value on the last reporting date, which is $65,000 - $57,000 = $8,000. This gain is recognized in the income statement, hence the credit to Gain on Sale of Trading Securities.

Trading Securities Were Sold on January 3, 2018, for $65,000