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On February 15, Jewel Company buys 6,800 shares of Marcelo Corporation at $28.65...

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Accounting

On February 15, Jewel Company buys 6,800 shares of Marcelo Corporation at $28.65 per share. The stock is classified as a stock investment with insignificant influence. This is the companys first and only stock investment. On March 15, Marcelo Corporation declares a dividend of $1.17 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15. Jewel Company sells half of the Marcelo Corporation stock on November 17 of the current year for $29.43 per share. The fair value of the remaining shares its December 31 year-end is $29.63 per share. The impact on Jewels December 31 year-end net income as a result of its investment in Marcelo Corporation was a(n):

Multiple Choice

Increase to income of $13,940.

Increase to income of $7,956.

Incorrect

Increase to income of $10,608.

Decrease to income of $7,956.

Decrease to income of $5,304.

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