Earnings from Trading Securities During 2000, Pilser Company received dividends of $1,200, $1,600, and

$300, respectively, from its investment in the common shares of Ace, Day, and Ming companies. The shares of these companies are included in Pilser’s trading securities portfolio. If Pilser Company reported income from operations of

$170,000 and an unrealized gain on trading securities of

$4,000 in 2000:

a. What amount of net income will Pilser Company report for 2000?

b. If Pilser’s total investment in the three companies at January 1, 2000, was $150,000, did it meet its goal of earning a 10 percent return on trading securities during 2000?