Question - Landis Co. purchased equity securities of Ritter, Inc. on July 1, 2012 for $1,041,580 and classified them as Available-for-Sale Securities. Landis Co. prepares financial reports and makes adjusting entries on a quarterly basis. At the end of the 3rd quarter in 2012, on September 30, 2012, the market value of Landis' holdings of the Ritter Inc. shares has gone down by $7,200 compared to purchase price. On December 31, 2012, the fair value of the Ritter, Inc. shares was $1,060,000. What should Landis Co. report in the 2012 annual report as other comprehensive income and as a separate component of changes in stockholders' equity for these securities during year 2012?
a. $25,620.00
b. $18,420.00
c. $7,200.00
d. No entry should be made