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During 2017, Wildhorse Company purchased 89000 shares of Holmes Corporation common stock for $1350000 as an...

During 2017, Wildhorse Company purchased 89000 shares of Holmes Corporation common stock for $1350000 as an equity investment. The fair value of these shares was $1281000 at December 31, 2017. Wildhorse sold all of the Holmes stock for $17 per share on December 3, 2018, incurring $65000 in brokerage commissions. Wildhorse Company should report a realized gain on the sale of stock in 2018 of

$98000.
$232000.
$163000.
$167000.
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Answer #1

Realized gain = Selling price - commission - cost of stock

= 89000*17 - 65000 - 1350000

= $98000

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