Realized loss on disposal of the investee


In Year 1, Investor Co. purchased 1,000 shares of Investee Co. stock for $20,000. These shares were properly accounted for as available for sale. At December 31, Year 1, the Investee Co.'s shares were being traded at $18. On February 1, Year 2, Investor sold 500 shares of Investee's stock for $17 per share. In the financial statements for its fiscal year ended December 31, Year 2, Investor should report a realized loss on disposal of the Investee Co. shares equal to:

a) $3,000

b) $1,500

c) $1,000

d) $8,500

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Accounting Basics: Realized loss on disposal of the investee
Reference No:- TGS062702

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