Based on the information provided, what is the realized loss for Colorado Co. after the sale of its stock?

To determine the realized loss for Colorado Co. after the sale of its stock, it's essential to look at the difference between the initial cost basis of the stock and the sale proceeds. The realized loss is calculated as the sale price minus the cost basis, where the cost basis is the amount that was originally paid for the stock.

Assuming that the context of the question suggests that Colorado Co. sold the stock for a lower price than it was acquired, the calculation for the realized loss would yield a negative value, indicating a loss. The choice indicating a realized loss of 600 suggests that this is the correct calculation based on the figures provided: the company paid a certain amount for the stock and sold it for a lower amount, resulting in a loss of 600.

This understanding reflects a fundamental concept in financial accounting, where realized losses and gains are recognized at the point of sale, allowing companies to assess the impact of their investment activities on their financial statements. Therefore, the choice indicating a realized loss of 600 correctly captures the situation described.