On October 1, 2010, Black Company Declared a Property Dividend $\begin{array}{ll}\text { October } 1,2010 & \$ 430,000 \\\text { December } 1,2010 & 435,000 \\\text { December } 31,2010 & 440,000\end{array}$

question 6

Multiple Choice

On October 1, 2010, Black Company declared a property dividend payable in the form of marketable equity securities classified as "available for sale" for financial accounting purposes.The marketable equity securities will be distributed to the common stockholders on December 1, 2010.The investment in equity securities originally cost Black $410, 000 on August 1, 2010.The investment's fair value on various dates is as follows: $\begin{array}{ll}\text { October } 1,2010 & \$ 430,000 \\\text { December } 1,2010 & 435,000 \\\text { December } 31,2010 & 440,000\end{array}$
The amount credited to Realized Gain on Disposal of Investments resulting from this dividend transaction should be

• A)$ 0
• B)$20, 000
• C)$25, 000
• D)$30, 000

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Definitions:

Margin of Error

An indicator of the precision of an estimate in statistics, showing the range within which the true value is expected to lie with a certain level of confidence.

Confidence Interval

A range of values that is used to estimate the true value of a population parameter with a certain level of confidence.

Standard Deviation

An index used to assess the extent of variation or scatter among data points.

Sample Size

The number of observations or individuals in a subset collected from a population for the purposes of statistical analysis.