Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2015 for $59 per bond and

classified the investment as securities available for sale. The value of the Diamond investment was

$80 per bond on December 31, 2016, and $102 on December 31, 2017. During 2018, Hawk sold all

of its Diamond investment at $148 per bond.

In its 2018 income statement, Hawk would report:

A gain of $890,000.

A loss of $430,000.

A gain of $1,320,000.

A gain of $460,000.