On Its December 31, 20X1, Statement of fiNancial Position, Lumilite

Multiple Choice

On its December 31, 20X1, statement of financial position, Lumilite Co. reported its temporary investment in equity securities, under the fair value through net income method at $330,000. At December 31, 20X2, the fair value of the securities was $350,000. What should Lumilite report on its 20X2 statement of earnings because of the increase in fair value of the investments in 20X2?

A) $0
B) Unrealized gain of $20,000
C) Loss on investments of $10,000
D) Investment income of $20,000