Encore Industries owned investment securities with a book value of $45 million on August 12. At that time, Encore's board of directors declared a property dividend consisting of these securities. The fair value of the securities was as follows:
What amount of gain should Encore recognize in earnings in connection with this property dividend?
A) $0
B) $13 million
C) $15 million
D) $17 million
Answer: B
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