At the end of its first year, the trading securities portfolio consisted of the following common stocks. In the following year, the Edmunds Bolen common stock is sold for cash proceeds of $57,000. The gain or loss to be recognized on the sale is a
A) gain of $1,200.
B) loss of $5,000.
C) gain of $7,000.
D) loss of $1,200.

Question

At the end of its first year, the trading securities portfolio consisted of the following common stocks.  In the following year, the Edmunds Bolen common stock is sold for cash proceeds of $57,000. The gain or loss to be recognized on the sale is a
A) gain of $1,200. 
B) loss of $5,000. 
C) gain of $7,000. 
D) loss of $1,200.

Quizplus · Accepted Answer

The Answer of At the end of its first year, the trading securities portfolio consisted of the following common stocks.  In the following year, the Edmunds Bolen common stock is sold for cash proceeds of $57,000. The gain or loss to be recognized on the sale is a
A) gain of $1,200. 
B) loss of $5,000. 
C) gain of $7,000. 
D) loss of $1,200.

At the End of Its First Year, the Trading Securities