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 these reclassifications.

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Fair Value Security Classification Trading Available for sale Cost 5,000 6,000 (Dec. 31, Year 1) $4,000 8,000