On January 1, 2020 Sinister Corporation purchased 200,000 shares of Gates, Inc. which represents 20% of the outstanding stock of Gates, Inc. for $12 per share. Sinister also obtained 2 seats on the 7 member board of directors. both Sinister and Gates use a calendar year end. During 2020, Gates made a net profit of $1,000,000, paid dividends of $400,000, recorded its first adjustment to OCI of a debit of $100,000. On December 31, 2020, Gates repurchased 10% of its outstanding shares from each of its existing shareholders, including Sinister. The Fair Market Value per share of Gates at the end of 2020 was $22. What is the amount of gain the Sinister recognizes for the sale of the shares back to Gates?

Group of answer choices

$0

$190,000

$200,000

$440,000