Rodeo Company purchased 10,000 shares of Calgary Co.on July 15, 2011 for $12.00 per share.Calgary declared and paid a dividend of $1.20 per share in August.On September 30, the shares were trading on the stock exchange for $13.50.For the quarter ending September 30, which of the following would Rodeo report on its income statement?
A) Dividend income $12,000
B) Dividend income $12,000, Unrealized gain on temporary investments of $1,500
C) Dividend income $12,000, Realized gain on temporary investments of $15,000
D) Dividend income $12,000, Unrealized gain on temporary investments $15,000.
Correct Answer:
Verified
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