During 2012, Woods Company purchased 40,000 shares of Holmes Corp. common stock for 630,000 as an available-for-sale investment. The fair value of these shares was600,000 at December 31, 2012. Woods sold all of the Holmes stock for 17 per share on December 3, 2013, incurring28,000 in brokerage commissions. Woods Company should report a realized gain on the sale of stock in 2013 of ________.
1) $40,000
2) $160,000
3) $200,000
4) $280,000