The company purchased the following securities during Year 1: In Year 2, the company reclassified both of

Question:

The company purchased the following securities during Year 1:

In Year 2, the company reclassified both of these securities. Security A was reclassified as available for sale; the fair value of security A at the time of the reclassification was $5,500. Security B was reclassified as trading; the fair value of security B at the time of the reclassification was $4,100. Make the journal entries necessary to record both of thesereclassifications.