12.An investor has a long-term investment in stocks. Regular cash dividends received by the investor are recorded as

Fair Value Method Equity Method

a. Income Income

b. A reduction of the investment A reduction of the investment

c. Income A reduction of the investment

d. A reduction of the investment Income

13. On its December 31, 2017, balance sheet, Trump Company reported its investment in equity securities, which had cost $600,000, at fair value of $560,000. At December 31, 2018, the fair value of the securities was $585,000. What should Trump report on its 2018 income statement as a result of the increase in fair value of the investments in 2018?

a. $0.

b. Unrealized loss of $15,000.

c. Realized gain of $25,000.

d. Unrealized gain of $25,000.