The company purchased the following securities during Year 1:

In Year 2, the company reclassified both of these securities. Security A was reclassified as held to maturity; the market value of security A at the time of the reclassification was $8,000. Security B was reclassified as available for sale; the market value of security B at the time of the reclassification was $7,100. Make the journal entries necessary to record both of thesereclassifications.

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Market Value (Dec. 31, Year 1) Security Classification Avallable for sale Held to maturity Cost $7,500 9,000 $6,000 2,000