A short-term investment acquired at a cost of $50,000 in 2016 is sold in 2017 for $45,800.After the proper adjusting entry was prepared in 2016,the short-term investment had a carrying value of $43,200.In 2017,the investor should report a(n):

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The gain on sale is calculated by subtracting the carrying value at the time of sale ($43,200) from the sale price ($45,800), resulting in a gain of $2,600.

A Short-Term Investment Acquired at a Cost of $50,000 in 2016