On January 1, 2014, XYC purchased 100 shares (1 percent) of AB common shares at $120 per share. XYC uses the cost method to account for the AB shares. Subsequent to purchase, the following transactions and events happened: June 1, 2001, received a 20 percent stock dividend on the AB shares; March 31, 2015, XY sold half of the AB shares at $108 per share. Calculate XYC's recognize a gain (loss) on the sale of the AB shares.

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The Answer of On January 1, 2014, XYC purchased 100 shares (1 percent) of AB common shares at $120 per share. XYC uses the cost method to account for the AB shares. Subsequent to purchase, the following transactions and events happened: June 1, 2001, received a 20 percent stock dividend on the AB shares; March 31, 2015, XY sold half of the AB shares at $108 per share. Calculate XYC's recognize a gain (loss) on the sale of the AB shares.

On January 1, 2014, XYC Purchased 100 Shares (1 Percent)