Compute the unrealized gain or loss on the investment

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Point 1: On January 2, 2019, All Good Company purchased 6,000 shares of the stock of Big Bad Company, and DID NOT obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $10 per share, and represents a 10% ownership stake. Big Bad Company made $200,000 of net income in 2019, and paid dividends to All Good Company of $5,000 on December 15, 2019. On December 31, 2019, Big Bad Company's stock was trading on the open market for $12.50 per share at the end of the year.

Question 1: Use this information to determine the unrealized gain or loss on the investment that should be reported at year end by All Good Company. If it is a loss, enter as a negative number. Round to nearest whole dollar.

Reference no: EM132516930

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