13) ABC Corporation declares and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the investment account of the investor under each of the following accounting methods? Fair Value Method E quity Method A) Decrease C) Increase No Effect B) Decrease D) No Effect No Effect No Effect Decrease On January 3, 2020, ABC Company acquires $500,000 of XYZ Company's 10-year, 10% bonds at a price of $532,090 to yield 9 %. Interest is payable each December 31. The bonds are classified as held-to-maturity. 14) Assuming that ABC Company uses the effective interest method, what is the amount of interest revenue that would be recognized in 2021 related to these bonds? A) $47,890 B) $50,000 C) $53,208 D) $47,698 15) During 2021 Black Company purchased 10,000 shares of White, Inc. for $30 per share. During the year Black Company sold 2,500 shares of White, Inc. for $35 per share. At December 31, 2021 the market price of White, Inc.'s stock was $28 per share. What is the total amount of gain/(loss) that Black Company will report in its income statement for the year ended December 31, 2021 related to its investment in White, Inc. stock? A) ($20,000) B) $12,500 C) ($2,500) D) ($7,500) 16) ABC Corporation has the following investment which was held throughout 2021-2022 Eair Value 12/31/21 12/31/22 $1,200,000 $1,140,000 Cost $900,000 Equity investment What amount of pain or loss would ABC Corporation report in its income statement for the year ended December 31, 2022 related to its investment