statements is true? 10. When an investor sells shares of its investee company, which of the following 4. A realized gain or loss is reported as the difference between selling price and original B. An unrealized gain or loss is reported as the difference between selling price and C. A realized gain or loss is reported as the difference between selling price and carrying D. An unrealized gain or loss is reported as the difference between selling price and E. Any gain or loss is reported as part as comprehensive income original cost carrying value On January 4, 2007, Harley, Inc. acquired 40% of the outstanding common stock of Bike Co. for $2,400,000. This investment gave Harley the ability to exercise significant influence over Bike. Bike's assets on that date were recorded at $10,500,000 with liabilities of $4,500,000. There were no other differences between book and fair values. During 2007, Bike reported net income of $500,000. For 2008, Bike reported net income of $800,000. Dividends of $300,000 were paid in cach of these two years. 11. How much income did Harley report from Bike for 2007? A. S120,000 B. $200,000 CS300,000 D. S320,000 E. SS00,000 12. How much income did Harley report from Bike for 2008? A. $120,000 B. $200,000 C. $300,000 D. $320,000 E. $500,000 13. What was the reported balance of Harley's Investment in Bike Co. at December 31, 2007? A. $880,000 B. $2,400,000 C. $2,480,000 D. $2,600,000 E. $2,900,000 14. What was the reported balance of Harley's Investment in Bike Co. at December 31, 2008? A. $2,400,000 B. $2,480,000 C. $2,500,000 D. $2,600,000 E. 52,680,000