A company has shares in 3M Company stock that that it originaly bought for $100,000. On 3/31/2013, this investment was valued at $130,000 on the balance sheet. On 4/4/2013, the company sells the stock for $110,000. The company accounts for this investment using the Trading Securitiwes method.

How will this transaction show up on the income statement?

1) Loss on the sale of investments of $20,000

2) Loss on the sale of investments of $10,000

3) Gain on the sale of investments of $20,000

4) Gain on the sale of investments of $10,000

5) It will not affect the income statement