Use the following information on a company's investments in equity securities with no significant influence to answer bellow Questions. The company's accounting year ends December 31.
$\begin{array}{|l|r|r|r|r|r|}
\hline&\text { Date of } &&\text { Fair Value } &\text { Date }&\text { Selling } \
\text { Investment }&\text { Acquisition } & \text { Cost } &12 / 31 / 19&\text { Sold }&\text { Price }\
\hline \text { Colt Company stock } & 9 / 20 / 19 & \$ 38,000 & \$ 37,000 & 2 / 10 / 20 & \$ 42,000 \
\hline \text { Dana Company stock } & 10 / 2 / 19 & 14,000 & 14,200 & 1 / 17 / 20 & 13,000 \
\hline
\end{array}$
-What amount is reported for gain or loss on these securities in 2020 income?

Question

Use the following information on a company's investments in equity securities with no significant influence to answer bellow Questions. The company's accounting year ends December 31.
 $\begin{array}{|l|r|r|r|r|r|}
\hline&\text { Date of } &&\text { Fair Value } &\text { Date }&\text { Selling } \
\text { Investment }&\text { Acquisition } & \text { Cost } &12 / 31 / 19&\text { Sold }&\text { Price }\
\hline \text { Colt Company stock } & 9 / 20 / 19 & \$ 38,000 & \$ 37,000 & 2 / 10 / 20 & \$ 42,000 \
\hline \text { Dana Company stock } & 10 / 2 / 19 & 14,000 & 14,200 & 1 / 17 / 20 & 13,000 \
\hline
\end{array}$
-What amount is reported for gain or loss on these securities in 2020 income?

Quizplus · Accepted Answer

The gain on the sale of Colt Company stock is $4,000 ($42,000 - $38,000). The loss on the sale of Dana Company stock is $1,200 ($13,000 - $14,200). The net gain is $2,800 ($4,000 - $1,200).

Use the Following Information on a Company's Investments in Equity