ABCD Company has investment in shares of AAAA which are deemed to be non-trading (i.e., they are not held for trading purposes).

The details of the shares are as follows:

Amount: 9,000 Ordinary Shares

Purchase Price: $60 each

Purchase Date: I January 2020

On December 31 2020, the shares are valued at $58 each.

The shares pay a dividend of $7.00 per share

WHAT IS THE IMPACT ON ABCD' 2020 NET INCOME OF ITS PURCHASE OF SHARES IN AAAA?

Select one:

a. Net Income is $54,000 higher

b. Net Income is $36,000 higher

c. Net Income is $63,000 higher

d. Net Income is $45,000 higher

e. None of these answers