On January 1, 2012, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000. On January 1, 2016, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share. Sludge Company's stockholders' equity on January 1, 2012, and January 1, 2016, was as follows: The difference between implied and book value is assigned to Sludge Company's land. The amount of the gain on sale of the 2,000 shares that should be recorded on the books of Pharma Company is:

Question

On January 1, 2012, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000. On January 1, 2016, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share. Sludge Company's stockholders' equity on January 1, 2012, and January 1, 2016, was as follows:  The difference between implied and book value is assigned to Sludge Company's land. The amount of the gain on sale of the 2,000 shares that should be recorded on the books of Pharma Company is:

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The Answer of On January 1, 2012, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000. On January 1, 2016, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share. Sludge Company's stockholders' equity on January 1, 2012, and January 1, 2016, was as follows:  The difference between implied and book value is assigned to Sludge Company's land. The amount of the gain on sale of the 2,000 shares that should be recorded on the books of Pharma Company is:

On January 1, 2012, Pharma Company Purchased 16,000 of the 20,000