2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement as income from this investment? A) $26,000 B) $7,200 C) $20,000. D) $27,200. 3. Smith buys and sells securities. On December 15, 2018, Smith purchased $500,000 of Jones shares and elected the fair value option to account for the Jones investment. As of December 31, 2018, the Jones shares had a fair value of $525,000. In the 2018 financial statements, Smith will report (ignore taxes): A) Investment income of $25,000 in its income statement. B) Other comprehensive income of $25,000. C) Accumulated other comprehensive income of $525,000. D) An investment in Jones of $500,000