15) An investor holds 5% of the outstanding stock of an investee. The investor plans to sell the stock in two months. The investor reports the dividends received from the stock as ________. A) an increase in the investment account B) a decrease in the investment account C) dividend revenue on the income statement D) equity in earnings of the investee on the income statement

17) An investor in trading securities has the following information available at December 31, 2012: Market value of trading securities $8,000 Acquisition cost of trading securities $9,000 How does the investor report the change in market value on the trading securities at December 31, 2012?

A) unrealized loss of $1,000 on income statement B) unrealized gain of $1,000 on income statement C) $1,000 is added to other comprehensive income account on the balance sheet D) $1,000 is subtracted from the other comprehensive income account on the balance sheet

18) Van Dover Company purchased common stock in Sanchez Company. During the current year, Sanchez Company earned $4,000,000 and paid dividends of $1,000,000. Assume that Van Dover Company owns 30% of the outstanding shares of Sanchez Company. Sanchez Company's dividend will affect Van Dover Company by ________. A) increasing cash and stockholders' equity by $300,000 B) increasing investments and stockholders' equity by $300,000 C) increasing cash and decreasing investments by $300,000 D) increasing cash and increasing investments by $300,000