21) ABC Corporation purchased 25,000 shares of common stock of the XYZ Corporation for $40 per share on January 2, 2020.XYZ Corporation had 100,000 shares of common stock outstanding during 2021, paid cash dividends of $150,000 during 2021, and reported net income of $500,000 for 2021. ABC Corporation should report revenue from investment for 2021 in the amount of A) $137,500. B) $125,000. C) $37,500. D) $87,500. 22) A correct valuation for debt securities is A) held-to-maturity at fair value. B) available-for-sale at amortized cost. C) held-to-maturity at amortized cost. D) None of these answers are correct. 23) Unrealized holding gains or losses which are recognized in income are from debt securities classified as A) trading. B) held-to-maturity. C) available-for-sale. D) None of these answers are correct. 24) Debt securities that are accounted for at amortized cost, not fair value, are A) held-to-maturity debt securities. B) never-sell debt securities. C) available-for-sale debt securities.D) trading debt securities. 25) Use of the effective interest method in amortizing bond premiums and discounts results in A) a greater amount of interest income over the life of the bond issue than would result from use of the straight-line method. B) a variable rate of return on the book value of the investment. C) a smaller amount of interest income over the life of the bond issue than would result from use of the straight-line method D) a varying amount being recorded as interest income from period to period