A firm purchased availableforsale security investments for 2

A firm purchased available-for-sale security investments for $200,000. During the year, the firm received dividends totaling $12,000 from these stock investments. At year end, the stock portfolio had a quoted market value of $215,000. The increase in net income for the year (ignore income taxes) from these investments is:

Select one:

A. $12,000

B. $ 8,000

C. $15,000

D. $27,000

Solution

D. $27,000

Explanation: The increase in net income for the year from these investments is $27,000.

$200,000 - $215,000 + $12,000 = $27,000

NOTE: