Report on realized gain on the sale of stock

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Reference no: EM13157818

During 2007, Ellis Company purchased 20,000 shares of Hiller Corp. common stock for $315,000 as an available-for-sale investment. The fair value of these shares was $300,000 at December 31, 2007. Ellis sold all of the Hiller stock for $17 per share on December 3, 2008, incurring $14,000 in brokerage commissions. What should Ellis Company should report a realized gain on the sale of stock in 2008?

A. $40,000

B. $25,000

C. $11,000

D. $26,000

Reference no: EM13157818

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