Question: On September 18, 2024, CDE Company purchased 8,000 shares (9%) of Tesla, Inc. stock for $39 per share. The market value per share of Tesla's stock at December 31, 2024 was $44. On May 12, 2025, CDE Company sold 2,300 shares of its Tesla stock for $36 per share. The market value of Tesla's stock at December 31, 2025 was $31 per share. CDE Company sold 3,700 shares of its Tesla stock on July 19, 2026 for $42 per share. At December 31, 2026, the market value of the Tesla stock was $46 per share. Calculate the amount of the realized gain reported on CDE Company's 2026 income statement.
Question: On September 18, 2024, CDE Company purchased 8,000 shares (9%) of Tesla, Inc. stock for $39 per share. The market value per share of Tesla's stock at December 31, 2024 was $44. On May 12, 2025, CDE Company sold 2,300 shares of its Tesla stock for $36 per share. The market value of Tesla's stock at December 31, 2025 was $31 per share. CDE Company sold 3,700 shares of its Tesla stock on July 19, 2026 for $42 per share. At December 31, 2026, the market value of the Tesla stock was $46 per share. Calculate the amount of the realized gain reported on CDE Company's 2026 income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On September 18, 2024, CDE Company purchased 8,000 shares (9%) of Tesla, Inc. stock for $39 per share.
The market value per share of Tesla's stock at December 31, 2024 was $44.
On May 12, 2025, CDE Company sold 2,300 shares of its Tesla stock for $36 per share.
The market value of Tesla's stock at December 31, 2025 was $31 per share.
CDE Company sold 3,700 shares of its Tesla stock on July 19, 2026 for $42 per share.
At December 31, 2026, the market value of the Tesla stock was $46 per share.
Calculate the amount of the realized gain reported on CDE Company's 2026 income statement.
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