Dim Corporation purchased 1,000 shares of Witt Corporation stock in 2013 for $800 per share and classified the investment as securities available for sale.Witt's market value was $400 per share on December 31,2014,and $300 on December 31,2015.During 2016,Dim sold all of its Witt stock at $350 per share.In its 2016 income statement,Dim would report:

Question

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Dim Corporation originally purchased the shares for $800,000 (1,000 shares x $800). They sold them for $350,000 (1,000 shares x $350), resulting in a realized loss of $450,000 ($800,000 - $350,000).

Dim Corporation Purchased 1,000 Shares of Witt Corporation Stock in 2013