Reference no: EM132513648
Question - On January 1, 2021 M.T. Glass purchased the following investments:
1. 7,500 shares (representing 15%) of ZZ Company stock for $98,000.
2. 25,000 shares (representing 40%) of AA Company stock for $440,000.
M.T. Glass recorded the sale of some of its investments in 2022 as follows:
1. September 1 sold 5,000 shares of the ZZ Company stock for $76,000.
2. December 31 sold 4,000 shares of the AA Company stock for $120,000.
AA Company and ZZ Company reported the following information for the years 2021 and 2022:
|
AA Company
|
ZZ Company
|
Net income in 2021
|
$260,000
|
$200,000
|
Dividends paid to M.T. Glass in 2021
|
$24,000
|
$15,000
|
Market value at Dec 31, 2021
|
$27 per share
|
$22 per share
|
Net income in 2022
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$160,000
|
$225,000
|
Dividends paid to M.T. Glass in 2022
|
$41,000
|
$5,000
|
Market value at Dec 31, 2022
|
$24 per share
|
$28 per share
|
Required - Calculate the amount of the unrealized gain reported in M.T. Glass' 2022 income statement.