Reference no: EM132582202

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 3,000 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
Total dividends paid in 2021              $24,000                            $15,000
Market value at Dec 31, 2021             $27/share                    $22/share

Net income in 2022                           $160,000                      $225,000
Total dividends paid in 2022               $41,000                         $5,000
Market value at Dec 31, 2022             $24/share                     $29/share

Question 1: Calculate the amount of the unrealized gain reported in M.T. Glass' 2022 income statement.