What is the impact of these stock activities on Lane’s year 2 income statement? 1 answer below »
What is the impact of these stock activities on Lane’s year 2 income statement? 1 answer below »
At the end of year 1, Lane Co. held trading securities that cost $86,000 and which had a year-end marketvalue of $92,000. During year 2, all of these securities were sold for $104,500. At the end of year 2,Lane had acquired additional trading securities that cost $73,000 and which had a year-end market valueof $71,000. What is the impact of these stock activities on Lane’s year 2 income statement?a. Loss of $2,000.b. Gain of $10,500.c. Gain of $16,500.d. Gain of $18,500.
