XYZ Company sold its AFS securities for \$30,000, which had a previous fair value of \$25,000. What is the journal entry for the realized gain?

• A. Debit Cash \$25,000; Credit Investment in AFS Securities \$25,000; Credit Realized Gain on Sale of AFS Securities \$5,000
• B. Debit Cash \$30,000; Credit Investment in AFS Securities \$25,000; Credit Realized Gain on Sale of AFS Securities \$5,000
• C. Debit Cash \$25,000; Credit Investment in AFS Securities \$30,000; Debit Realized Gain on Sale of AFS Securities \$5,000
• D. Debit Cash \$30,000; Credit Investment in AFS Securities \$30,000

Answer: (B)