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Report for change in investment fair value

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On January 1, 2017, Hammond Corporation purchased 2,000 shares of Jensen Corporation for $60 per share. During the year, $500 cash dividend is received from the Jensen shares. At the end of the year, Jensen's stock is selling for $58 per share. The Jensen shares are sold by Hammond on February 24, 2018 for $70 per share. Which of the following statement is true?

In 2018, Hammond will report a gain on sale of trading securities of $24,000.

In 2018, Hammond will not report for change in the investment's fair value.

In 2017, Hammond will report a Unrealized Gain of $4,000.

In 2017, Hammond's accumulated other comprehensive income will be increased by the amount of Unrealized Loss-Trading Securities.

In 2017, Hammond's investment in Jensen shares will be reduced by the amount of dividends received.

Reference no: EM133272699

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