On January 2,2013,Bismark Corporation Bought 20 Percent of Congeal Corporation's

question 73

Multiple Choice

On January 2,2013,Bismark Corporation bought 20 percent of Congeal Corporation's capital stock for $60,000 and classified it as available-for-sale securities.Congeal's net incomes for the years ended December 31,2013,and 2014,were $20,000 and $100,000,respectively.During 2014,Congeal declared a dividend of $110,000.No dividends were declared in 2013.On December 31,2014,the fair value of the Congeal stock owned by Bismark had increased to $90,000.How much should Bismark show on its 2014 income statement as income from this investment?

• A) $18,000
• B) $20,000
• C) $22,000
• D) $44,000

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