Watsontown Yacht Sales has been selling large power cruisers for 25 years. On January 1, 2008, the company had \($5,950,000\) in inventory (based on a FIFO valuation). While the number of yachts in Watsontown Yacht Sales’ inventory remained fairly constant throughout 2008, by December 31, 2008 yacht prices were 7% higher than at the start of the year. The company reported cost of goods sold for 2008 of $23,800,000.
Required:
Calculate the amount of realized holding gains in Watsontown Yacht Sales’ income for 2008.