Gayton Corporation purchased 1,000 shares of Smart common stock ($50 par) at $80 per share as a short-term investment. The shares were subsequently sold at $78 per share. The cost of the securities purchased and gain or loss on the sale were $\begin{array}{lll}&\text { Cost }&\text { Gain or Loss }\
\text { a. } & \$ 50,000 & \$ 2,000 \text { gain } \
\text { b. } & \$ 50,000 & \$ 2,000 \text { loss } \
\text { c. } & \$ 80,000 & \$ 2,000 \text { gain } \
\text { d. } & \$ 80,000 & \$ 2.000 \text { loss }
\end{array}$

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The Answer of Gayton Corporation purchased 1,000 shares of Smart common stock ($50 par) at $80 per share as a short-term investment. The shares were subsequently sold at $78 per share. The cost of the securities purchased and gain or loss on the sale were $\begin{array}{lll}&\text { Cost }&\text { Gain or Loss }\
\text { a. } & \$ 50,000 & \$ 2,000 \text { gain } \
\text { b. } & \$ 50,000 & \$ 2,000 \text { loss } \
\text { c. } & \$ 80,000 & \$ 2,000 \text { gain } \
\text { d. } & \$ 80,000 & \$ 2.000 \text { loss }
\end{array}$

Gayton Corporation Purchased 1,000 Shares of Smart Common Stock ($50