On January 1, 2014, Short Company Purchased as an Available-For-Sale

Multiple Choice

On January 1, 2014, 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 2014, Daniel declared and paid a cash dividend of $1.25 per share. At December 31, 2014, end of the accounting period, Daniel's shares were selling at $48. The 2014 financial statements for Short Company should report the following amounts: $\begin{array}{lrcc}&\text { Long-Term }&\text { Unrealized Holding }&\text { Investment }\\&\text { Investment }&\text { Gains/(Losses) }&\text { Revenue }\\\hline\text { A. } & \$ 1,000,000 & \$(40,000) & \$ 25,000 \\\text { B. } & 960,000 & \text { Zero } & \text { Zero } \\\text { C. } & 1,000,000 & (15,000) & \text { Zero } \\\text { D. } & 960,000 & (40,000) & 25,000\end{array}$

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