When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a(n)

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When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a gain or loss. This is because it represents the difference between the amount received from the sale and the amount that was originally paid to acquire the investment. A gain is recorded if the proceeds exceed the carrying amount, while a loss is recorded if the carrying amount exceeds the proceeds. Choices A, B, and C do not accurately describe this type of transaction.

When Shares of Stock Held as an Investment Are Sold