During 2020, Sheridan Company purchased 85000 shares of Pina Corporation common stock for $1310000 as an equity investment. The fair value of these shares was $1245000 at December 31, 2020. Sheridan sold all of the Pina stock for $17 per share on December 3, 2021, incurring $61000 in brokerage commissions. Sheridan Company should report a realized gain on the sale of stock in 2021 of   $200000.     $135000.     $74000.     $139000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During 2020, Sheridan Company purchased 85000 shares of Pina Corporation common stock for $1310000 as an equity investment. The fair value of these shares was $1245000 at December 31, 2020. Sheridan sold all of the Pina stock for $17 per share on December 3, 2021, incurring $61000 in brokerage commissions. Sheridan Company should report a realized gain on the sale of stock in 2021 of

 

$200000.

 

 

$135000.

 

 

$74000.

 

 

$139000.

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