XYZ Company sold its trading securities for \$50,000, which were last valued at \$45,000. How should the realized gain be recorded?

• A. Debit Cash \$50,000; Credit Realized Gain \$5,000; Credit Investment in Trading Securities \$45,000
• B. Debit Cash \$50,000; Credit Investment in Trading Securities \$45,000; Credit Realized Gain \$5,000
• C. Debit Cash \$45,000; Credit Investment in Trading Securities \$50,000; Debit Realized Gain \$5,000
• D. Debit Investment in Trading Securities \$45,000; Credit Cash \$50,000; Credit Realized Gain \$5,000

Answer: (B)