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Gain on Sale of Debt Investments 150
Interest Revenue 20
Cash 1,220
Debt Investments 1,200
Interest Revenue 20
Cash 1,200
Debt Investments 1,050
Gain on Sale of Debt Investments 150
3-
Multiple Choice Question 117
At the end of its first year, the trading securities portfolio
consisted of the following common stocks.
Cost Fair Value
Atrium Corporation $ 46,400 $ 50,000
Barnes Inc. 60,000 55,800
Cantor Corporation 80,000 76,000
$186,400 $181,800
In the following year, the Barnes common stock is sold for cash
proceeds of $56,000. The gain or loss to be recognized on the sale
is a
loss of $4,000.
gain of $1,200.
gain of $200.