During 2020, Sheridan Company purchased 85000 shares of Pina Corporation common stock for $1310000 as an equity investment. The fair value of these shares was $1245000 at December 31, 2020. Sheridan sold all of the Pina stock for $17 per share on December 3, 2021, incurring $61000 in brokerage commissions. Sheridan Company should report a realized gain on the sale of stock in 2021 of   $200000.     $135000.     $74000.     $139000.

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A: The correct answer is given in the following steps for your reference

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