I want to this question answer general Accounting Hawk Corporation purchased 10,000 shares ofDiamond Corporation stock in 2013 for $60 pershareand classified the investment assecurities available for sale. Diamond's marketvalue was $74 per share on December 31, 2014and $100 on December 31, 2015. During 2016,Hawk sold all of its Diamond stock at $145 pershare. In its 2016 income statement, Hawkwould report:a. A gain of $850,000b. A gain of $450,000c. A loss of $400,000d. A gain of $1,250,000

Step 1: Define StocksIn business and finance, stocks refer to the securities issued by the company…

Answered: Hawk Corporation purchased 10,000…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 18P

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