xyz-company-sold-its-trading-securities-for-50000-which-were-last-valued-at-4500

Question

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

Accepted Answer

Debit Cash $$50,000; Credit Investment in Trading Securities 45$$,000; Credit Realized Gain $5,000

Answer

Debit Cash $$50,000; Credit Realized Gain 5$$,000; Credit Investment in Trading Securities $45,000

Answer

Debit Cash $$45,000; Credit Investment in Trading Securities 50$$,000; Debit Realized Gain $5,000

Answer

Debit Investment in Trading Securities $$45,000; Credit Cash 50$$,000; Credit Realized Gain $5,000

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