On January 1, 2012, Berger Corporation Paid $800,000 to Purchase

Multiple Choice

On January 1, 2012, Berger Corporation paid $800,000 to purchase 40% of the outstanding stock of Oakley Company. Oakley Company reported net income of $200,000 for the year ending December 31, 2012 and paid cash dividends of $60,000 during 2012. On January 1, 2013, Berger Corporation sells its entire investment in Oakley Company for $1,100,000. Berger Corporation will report a(n) :

A) realized gain on the sale of $300,000.
B) unrealized gain on the sale of $300,000.
C) realized gain on the sale of $244,000.
D) unrealized gain on the sale of $244,000.