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S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2013, S&L purchased Coca-Cola common shares for $875,000 and sold the shares on January 3, 2014, for $880,000. At December 31, the shares had a fair value of $873,000.What pretax amounts did S&L include in its 2013 and 2014 earnings as a result of this investment?

S&L Financial buys and sells securities expecting to earn profits on short­term differences in price. On December 27, 2013, S&L purchased Coca­Cola common shares for $875,000 and sold the…

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