Hawk Corporation Purchased Ten Thousand Shares of Diamond Corporation Stock

Hawk Corporation purchased ten thousand shares of Diamond Corporation stock in 2006 for $50 per share and classified the investment as securities available for sale. Diamond's market value was $60 per share on December 31, 2007 and $65 on December 31, 2008. During 2009, Hawk sold all of its Diamond stock at $70 per share. In its 2009 income statement, Hawk would report:

A) A gain of $ 50,000.
B) A gain of $150,000.
C) A gain of $200,000.
D) A gain of $300,000.In 2006-2008, Hawk accumulated an unrealized gain and fair value adjustment of ($65 50) 10,000 shares = $150,000.An additional increase of $50,000 occurred in 2009, so the total gain realized in the income statement would be $200,000.