The Fudge corporation purchased 1,000 shares of Chocolate Corp. common stock in 2011 for $800...
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The Fudge corporation purchased 1,000 shares of Chocolate Corp. common stock in 2011 for $800 per share and classified the investment as AFS. Chocolate Corp. market value was $400 per share on 12-31-2011, and $300 on 12-31-2012. During 2013, the Fudge Corp. sold all of its Chocolate stock at $350 per share. In its 2013 income statement the Fudge corporation would report?
A)A trading gain of $50,000 and an unrealized loss of $500,000
B)A realized gain of $50,000
C)A loss on the sale of investments of $450,000
D)An unrealized loss of $400,000
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