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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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