Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2015 for $61 per bond and classified...
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Accounting
Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2015 for $61 per bond and classified the investment as securities available for sale. The value of the Diamond investment was $72 per bond on December 31, 2016, and $107 on December 31, 2017. During 2018, Hawk sold all of its Diamond investment at $149 per bond. In its 2018 income statement, Hawk would report:
Multiple Choice
A gain of $420,000.
A gain of $880,000.
A loss of $460,000.
A gain of $1,340,000.
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