S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December

Question:

S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for $880,000. At December 31, the bonds had a fair value of $873,000. What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment (ignoring interest)? For the Coca-Cola bonds described in BE 12-2, prepare journal entries to record
(a) Any unrealized gains or losses occurring in 2018
(b) The sale of the bonds in 2019.