On January 1, 20X4, Short Company Purchased as an Available-For-Sale

Multiple Choice

On January 1, 20X4, Short Company purchased as an available-for-sale investment, 20,000 shares (15% of the outstanding voting shares) of Daniel Corporation's $1 par value common stock at a cost of $50 per share. During November 20X4, Daniel declared and paid a cash dividend of $2 per share. At December 31, 20X4, end of the accounting period, Daniel's shares were selling at $48. The 20X4 financial statements for Short Company should report the following amounts: $$\begin{array} { | l | r | r | r | } \hline & \text { Long-Term Investment } & \begin{array} { r } \text { Unrealized Holding } \\\text { Gains/Losses }\end{array} & \text { Investment Revenue } \\\hline \text { A } & 1,000,000 & 40,000 & 40,000 \\\hline \text { B } & 960,000 & \text { Zero } & \text { Zero } \\\hline \text { C } & 1,000,000 & 80,000 & \text { Zero } \\\hline \text { D } & 960,000 & 40,000 & 40,000 \\\hline\end{array}$$

A) Option A
B) Option B
C) Option C
D) Option D