On January 1,2010,Short Company purchased as an available-for-sale investment,20,000 shares (15% of the outstanding voting shares)of Daniel Corporation's $1 par value common stock at a cost of $50 per share.During November 2010,Daniel declared and paid a cash dividend of $2 per share.At December 31,2010,end of the accounting period,Daniel's shares were selling at $48.The 2010 financial statements for Short Company should report the following amounts: $$\begin{array} { l c c c }
& \underline { \text { Long-Term } } & \underline { \text { Unrealized Holding } } & \underline { \text { Investment } } \
& \underline { \text { Investment } } & \underline { \text { Gains/Losses } } & \underline { \text { Revenue } } \
\text { A. } & 1,000,000 & 40,000 & 40,000 \
\text { B. } & 960,000 & \text { Zero } & \text { Zero } \
\text { C. } & 1,000,000 & 80,000 & \text { Zero } \
\text { D. }& 960,000 & 40,000 & 40,000
\end{array}$$

Question

On January 1,2010,Short Company purchased as an available-for-sale investment,20,000 shares (15% of the outstanding voting shares)of Daniel Corporation's $1 par value common stock at a cost of $50 per share.During November 2010,Daniel declared and paid a cash dividend of $2 per share.At December 31,2010,end of the accounting period,Daniel's shares were selling at $48.The 2010 financial statements for Short Company should report the following amounts: $$\begin{array} { l c c c } 
& \underline { \text { Long-Term } } & \underline { \text { Unrealized Holding } } & \underline { \text { Investment } } \
& \underline { \text { Investment } } & \underline { \text { Gains/Losses } } & \underline { \text { Revenue } } \
\text { A. }  & 1,000,000 & 40,000 & 40,000 \
\text { B. } & 960,000 & \text { Zero } & \text { Zero } \
\text { C. } & 1,000,000 & 80,000 & \text { Zero } \
\text { D. }& 960,000 & 40,000 & 40,000
\end{array}$$

Quizplus · Accepted Answer

The Answer of On January 1,2010,Short Company purchased as an available-for-sale investment,20,000 shares (15% of the outstanding voting shares)of Daniel Corporation's $1 par value common stock at a cost of $50 per share.During November 2010,Daniel declared and paid a cash dividend of $2 per share.At December 31,2010,end of the accounting period,Daniel's shares were selling at $48.The 2010 financial statements for Short Company should report the following amounts: $$\begin{array} { l c c c } 
& \underline { \text { Long-Term } } & \underline { \text { Unrealized Holding } } & \underline { \text { Investment } } \
& \underline { \text { Investment } } & \underline { \text { Gains/Losses } } & \underline { \text { Revenue } } \
\text { A. }  & 1,000,000 & 40,000 & 40,000 \
\text { B. } & 960,000 & \text { Zero } & \text { Zero } \
\text { C. } & 1,000,000 & 80,000 & \text { Zero } \
\text { D. }& 960,000 & 40,000 & 40,000
\end{array}$$

On January 1,2010,Short Company Purchased as an Available-For-Sale Investment,20,000 Shares