During 2006, Rex Company purchased marketable equity securities as a short-term investment. These securities are classified as available-for-sale. The cost and market value at December 31, 2006, were as follows:
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|
Security |
Cost |
Market value |
|
A—100 shares |
$ 2,800 |
$ 3,400 |
|
B—1,000 shares |
17,000 |
15,300 |
|
C—2,000 shares |
31,500 |
29,500 |
|
$51,300 |
$48,200 |
Rex sold 1,000 shares of Company B stock on January 31, 2007, for $15 per share, incurring $1,500 in brokerage commission and taxes. On the sale, Rex should report a realized loss of
- $ 300
- $1,800
- $2,000
- $3,500