On January 1, 2012, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000. On January 1, 2016, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share. Sludge Companys stockholders equityon January 1, 2012, and January 1, 2016, was as follows:

	1/1/12	1/1/16
Common stock, $10 par value	$200,000	$200,000
Other contributed capital	200,000	200,000
Retained earnings	400,000	700,000
	$800,000	$1,100,000

The difference between implied and book value is assigned to Sludge Companys land. The amount of the gain on sale of the 2,000 shares that should be recorded on the books of Pharma Company is:

$34,000.

$85,000.

$48,000.

$100,000.