During 2017, Grambling Company purchased 10,000 shares of Southern Corp. common stock for $215,000 as an investment (no significant influence). The fair value of these securities was $289,000 at December 31, 2017. During 2018, Grambling sold all of the Southern stock for $226,000. Grambling Company should report a realized gain on the sale of stock in 2018 of:

(a) $11,000
(b) $25,000
(c) $26,000
(d) $37,000

Ans: (a) $11,000