A company buys an equity investment for $100 in 2020. The investment has no significant influence. At the end of 2020, the company still holds the investment and it has a market value of $115. In 2021, the company sells the investment for $108.
How is this information reported in the company's 2020 and 2021 income statements?
A) $15 gain on the 2020 income statement; $7 loss on the 2021 income statement.
B) Does not appear on the 2020 income statement; $8 gain on the 2021 income statement.
C) Does not appear on the 2020 income statement; $7 loss on the 2021 income statement.
D) $8 gain on the 2020 income statement; does not appear on the 2021 income statement.
Correct Answer:
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