Dim Corporation purchased 1,000 shares of Witt Corporation stock in 2010 for $88

Question

Dim Corporation purchased 1,000 shares of Witt Corporation stock in 2010 for $880 per share and classified the investment as securities available for sale. Witt's market value was $265 per share on December 31, 2011, and $428 on December 31, 2012. During 2013, Dim sold all of its Witt stock at $370 per share. In its 2013 income statement, Dim would report

A loss on the sale of investments of $510,000.

A trading gain of $58000 and an unrealized loss of $370,000.

A recognition of unrealized losses of $265,000.

A realized gain of $58,000.

Explanation / Answer

A loss on sale of investment of $ 510,000

Dim corporation purchased 1000 shares for rs. $880 in 2010 and sold for $ 370 per share in 2013. the difference in value of shares make a loss on sale of investments.

that is $ 880 - $370 = $510

Loss on sale of investment = 1000 shares * $510 = $510,000

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.