Sheridan Company's Investment in Midi, Inc.: Calculating Gain or Loss

To calculate the total amount of gain or loss that Sheridan Company will report in its income statement for the year ended December 31, 2018, we need to subtract the total cost of the shares sold from the total proceeds received from the sale.

Total cost of shares sold = Number of shares sold * Cost per share Total cost of shares sold = 2150 * $23 = $49,450

Total proceeds from sale = Number of shares sold * Sale price per share Total proceeds from sale = 2150 * $28 = $60,200

Gain or Loss = Total proceeds from sale - Total cost of shares sold Gain or Loss = $60,200 - $49,450 = $10,750

Therefore, Sheridan Company will report a gain of $10,750 in its income statement for the year ended December 31, 2018, related to its investment in Midi, Inc. stock. The correct option is $10,750.