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)

Question

Quizplus · Accepted Answer

The difference between the proceeds from the sale of shares and their carrying amount (or cost) is recognized as a gain or loss. This represents the change in value of the investment and is reported on the income statement as a component of net income or loss. Options A, B, and C are not applicable in this situation.

When Shares of Stock Held as an Investment Are Sold