On January 2, Year 1, Adam Co. purchased 10,000 shares of Mill Corp.'s common stock for $40 a share. On December 31,Year 1, the market price of Mill's stock was $35 a share. On December 28,Year 2, Adam sold 8,000 shares of Mill stock for $30 a share.

  Correct! The loss on the securities sold is the decline in market price times the number of shares sold (($35 - $30)x 8,000).

On January 2, Year 1, Adam Co. purchased 10,000 shares of Mill Corp.'s common stock for $40 a share. On December 31,Year 1, the market price of Mill's stock was $35 a share. On December 28,Year 2, Adam sold 8,000 shares of Mill stock for $30 a share.
For the year ended December 31, Year 2, Adam should report a loss on sale of investment of
$80,000. $100,000. $90,000. $40,000.

Here

 

Answer 

$40,000.