Hawk Corporation purchased 10,000 shares of Diamond Corporation stock in 2013 for $60 per share and classified the investment as securities available for sale. Diamond's market value was $74 per share on December 31, 2014 and $100 on December 31, 2015. During 2016, Hawk sold all of its Diamond stock at $145 per share. In its 2016 income statement, Hawk would report:

A gain of $850,000.

A gain of $450,000.

A loss of $400,000.

A gain of $1,250,000.