Question: I cannot seem to figure out question #4. The answer is D. $7,000, but I am not getting that amount. Please provide an explanation. I've

 I cannot seem to figure out question #4. The answer is

D. $7,000, but I am not getting that amount. Please provide an

explanation. I've included the other question relating to AFS securities as well.

I cannot seem to figure out question #4. The answer is D. $7,000, but I am not getting that amount. Please provide an explanation. I've included the other question relating to AFS securities as well. Below is my work.

Invest AFS 100,000
Cash 100,000
loss - OCI 1,000
Invest AFS 1,000
*to record change in value
Cash 29,000
reclass loss - income 1,000
loss - OCI 1,000
Invest AFS 25,000
Gain - income 4,000
Invest - AFS 6,000
Gain - OCI 6,000

My teacher said the answer to #4 was $7,000 and I can't see why. This is her reasoning and I don't know how to interpret it.

Beginning 100,000 - 25,000 (sold)

OCI Gain 6,000

Reclass 1,000

Net gain = 7,000

There is no reclassification of a gain...it is a loss that was reclassed as an income stmt loss...

Use the following information to answer questions 1-4: On January 1,2019, a company's balance sheet reports its investments in debt securities as follows Assets Investment in trading securities... .$160,000 100,b00 Equity Accumulated other comprehensive income: Unrealized gains (losses) on AFS securities... S 4,000 Additional information: The HTM securities are S200,000 face value secunties purchased on January i, 2017, at a yield of 4%, The securities have a 4-year total life and pay interest annually on December 31, at a coupon rate of 6%. a. b. The trading securities on hand on January I were sold in 2019 for $180,000. c. More trading securities were purchased for $100,000. They are still on hand at December 31,2019, and d. AFS securities, originally purchased for $26,000 with a carrying value of $25,000 as of January 1,2019, e. AFS securities on hand at December 31,2019, have a fair value of $81,000. have a fair value of $125,000. were sold for $29,000

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