Sunland, Inc. acquired 30% of Oriole Corporation's voting stock on January 1, 2021 for $1070000. During 2021, Oriole earned $418000 and paid dividends of $230000. Sunland's 30% interest in Oriole gives Sunland the ability to exercise significant influence over Oriole's operating and financial policies. During 2022, Oriole earned $515000 and paid cash dividends of $164000 on April 1 and $164000 on October 1. On July 1, 2022, Sunland sold half of its stock in Oriole for $678000 cash. What should the gain be on sale of this investment in Sunland's 2022 income statement? $114800. $83900. $143000. $100775.
Sunland, Inc. acquired 30% of Oriole Corporation's voting stock on January 1, 2021 for $1070000. During 2021, Oriole earned $418000 and paid dividends of $230000. Sunland's 30% interest in Oriole gives Sunland the ability to exercise significant influence over Oriole's operating and financial policies. During 2022, Oriole earned $515000 and paid cash dividends of $164000 on April 1 and $164000 on October 1. On July 1, 2022, Sunland sold half of its stock in Oriole for $678000 cash. What should the gain be on sale of this investment in Sunland's 2022 income statement? $114800. $83900. $143000. $100775.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sunland, Inc. acquired 30% of Oriole
Corporation's voting stock on January 1,
2021 for $1070000. During 2021, Oriole
earned $418000 and paid dividends of
$230000. Sunland's 30% interest in Oriole
gives Sunland the ability to exercise
significant influence over Oriole's operating
and financial policies. During 2022, Oriole
earned $515000 and paid cash dividends
of $164000 on April 1 and $164000 on
October 1. On July 1, 2022, Sunland sold
half of its stock in Oriole for $678000 cash.
What should the gain be on sale of this
investment in Sunland's 2022 income
statement?
$114800.
$83900.
$143000.
$100775.
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