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Item $12$

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On January $12,$ Henderson Corporation purchased bonds of Honeycutt Corporation for $$73$ million and classified the securities as available$-$for$-$sale. At the close of the same year, the fair value of the securities is $$81$ million. Henderson Corporation should report:

Multiple Choice

A gain of $$8$ million on the income statement.

An increase in shareholders' equity of $$8$ million.

An investment of $$73$ million.

None of the choices are correct.