A Local Governmental Entity Began the Year with a Security

Multiple Choice

A local governmental entity began the year with a security with an historical cost of $85 and a fair value at the beginning of the year of $95.During the year, dividends of $2 were received.At the end of the year the security had a fair value of $100.The amount that should be recognized on the fund financial statements for the year as investment income is

A) $-0-.
B) Gain $7.
C) Gain $15.
D) Gain $17.