Answer:
option d is right
income does Reed report relating to this investment for the year is $34200
Explanation:
Given data
purchases shares = 18000
1 share value = $8
cash dividend = $.090 per common share
common stock = $9 per share
to find out
total income
solution
we know total income for year = total dividend + unrealized gain by the change of fair .....................1
we say here
total dividend received is purchases shares × cash dividend
total dividend = 18000 × 0.90
total dividend is $16200 .................2
and
Unrealized gain by change of fair = (common stock per share - 1 share value ) × purchases shares
Unrealized gain by change of fair = (9 - 8 ) 18,000
Unrealized gain by change of fair is $18,000 .................3
put equation 2 and 3 in equation 1 we get
total income for year = total dividend + unrealized gain by the change of fair
total income for year = 16200 + 18,000
income does Reed report relating to this investment for the year is $34200
option d is right
