Available-for-sale investment

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Reference no: EM13826860

During 2014, Woods Company purchased 60,000 shares of Holmes Corporation common stock for $945,000 as an available-for-sale investment. The fair value of these shares was $900,000 at December 31, 2014. Woods sold all of the Holmes stock for $17 per share on December 3, 2015, incurring $42,000 in brokerage commissions. Woods Company should report a realized gain on the sale of stock in 2015 of

a. $33,000.

b. $75,000.

c. $78,000.

d. $120,000.

Reference no: EM13826860

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