Goofy Inc.bought 15,000 shares of Crazy Co.'s stock for $150,000 on May 5,2015,and classified the stock as available for sale.The market value of the stock declined to $118,000 by December 31,2015.Goofy reclassified this investment as trading securities in December of 2016 when the market value had risen to $125,000.What effect on 2016 income should be reported by Goofy for the Crazy Co.shares?
A) $0.
B) $25,000 net loss.
C) $7,000 net gain.
D) $32,000 net loss.
Correct Answer:
Verified
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