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 Equity 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: Fair Value 12/31/21 12/31/22 $1,200,000 $1,140,000 Cost $900,000 Equity investment What amount of gain or loss would ABC Corporation report in its income statement for the year ended December 31, 2022 related to its investment? A) $300,000 gain B) $60,000 gain C) $60,000 loss D) $240,000 gain