Without making journal entries, record the transactions of E-E-27B directly in the McCloud T-account, Equity-method Investment. Assume that after all the noted transactions took place, McCloud sold its entire investment in Brown for cash of $1,400,000. How much is McCloud’s gain or loss on the sale of the investment?

Data from E-E-27B

McCloud Corporation owns equity-method investments in several companies. McCloud paid $1,800,000 to acquire a 30% investment in Brown Software Company. Brown reported net income of $660,000 for the first year and declared and paid cash dividends of $460,000.