During 2021, Sandhill Company purchased 20000 shares of Tamarisk Corp. common stock for $430000 as a passive interest investment. The fair value of these shares was $578000 at December 31, 2021. During 2022, Sandhill sold all of the Tamarisk stock for $452000. Sandhill Company should report a realized gain on the sale of stock in 2022 of O $22000. O $50000. O $52000. O $74000.
During 2021, Sandhill Company purchased 20000 shares of Tamarisk Corp. common stock for $430000 as a passive interest investment. The fair value of these shares was $578000 at December 31, 2021. During 2022, Sandhill sold all of the Tamarisk stock for $452000. Sandhill Company should report a realized gain on the sale of stock in 2022 of O $22000. O $50000. O $52000. O $74000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![During 2021, Sandhill Company purchased 20000 shares of Tamarisk Corp. common stock for $430000 as a passive interest
investment. The fair value of these shares was $578000 at December 31, 2021. During 2022, Sandhill sold all of the Tamarisk stock for
$452000. Sandhill Company should report a realized gain on the sale of stock in 2022 of
O $22000.
O $50000.
O $52000.
O $74000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F21a4f907-aa38-4c82-a3ba-4693caa353b8%2Fe86c538c-d853-4206-8720-0d46c4101cbf%2F4ogoi5_processed.png&w=3840&q=75)
Transcribed Image Text:During 2021, Sandhill Company purchased 20000 shares of Tamarisk Corp. common stock for $430000 as a passive interest
investment. The fair value of these shares was $578000 at December 31, 2021. During 2022, Sandhill sold all of the Tamarisk stock for
$452000. Sandhill Company should report a realized gain on the sale of stock in 2022 of
O $22000.
O $50000.
O $52000.
O $74000.
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