On June 1, 2009, Blue Co. distributed to its common stockholders 100,000 outstanding common shares of its investment in Red, Inc., an unrelated party. The carrying amount on Blue's books of Red's $1 par common stock was $2 per share. Immediately after the declaration, the market price of Red's stock was $3 per share. In its income statement for the year ended June 30, 2009, what amount should Blue Co. report before income taxes on disposal of the stock? $200,000 gain. $100,000 loss. $300,000 gain. $100,000 gain