Investment Company (IC)began Operations on January 1,2016

question 122

Multiple Choice

Investment Company (IC) began operations on January 1,2016.It acquired the following investments:

IC earned interest of $12,000 during 2016.Dividends of $16,000 were declared on the shares it owned during 2016.Of that amount,$9,000 was received in December 2016 and $7,000 was received in January 2017 (note that the ex-dividend date for these shares was prior to the end of the year) .How much would be recorded as accumulated other comprehensive income on IC's balance sheet at December 31,2016?

• A)$10,000 gain.
• B)$10,000 loss.
• C)$30,000 gain.
• D)$30,000 loss.

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Definitions:

Surety

A person or entity that takes responsibility for someone else's performance, such as repaying a loan, appearing in court, or fulfilling a contract.

Creditor's Risk

The risk that a creditor will not receive the outstanding debt owed by a borrower, due to the borrower's default or inability to pay.

Cheerful Demeanor

Exhibiting a consistently happy and positive attitude in one’s behavior and interactions with others.

Impending Death

The situation or condition of being near to or approaching the end of life.