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Use the following information to answer Questions 32 and 33.
  At the beginning of the year, Company P purchased 1,000 shares of Company S for $80 per share. During the year, Company S paid a dividend of $4 per share. At the end of the year, Company S's share price was $75.

1.What amount of investment income should Company P recognize in its income statement if the investment in Company S is considered trading, and what amount should be recognized if the investment is considered available-for-sale?
 Trading   Available-for-sale
  • A.($1,000)    ($1,000)
  • B.($1,000)    $4,000
  • C.($5,000)    $4,000

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