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How much gain or loss will Varsity report

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Problem - On December 30, 2018, Varsity Corporation sold available for sale marketable securities costing $800,000 for $860,000 cash. The securities were purchased on January 2, 2016 and the market value of the securities on December 31, 2016 and December 31, 2017 was $820,000 and $780,000, respectively. How much gain or loss will Varsity report in its income statement for the year ending December 31, 2018?

a. A $40,000 gain.

b. A $20,000 loss.

c. A $60,000 gain.

d. An $80,000 gain.

Reference no: EM132462853

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