22) On January 1, 2014, Benson Corporation paid $800,000 to purchase 40% of the outstanding stock of Kroger Company. Kroger Company reported net income of $200,000 for the year ending December 31, 2014 and paid cash dividends of $60,000 during 2014. On January 1, 2015, Benson Corporation sells its entire investment in Kroger Company for $1,100,000. Benson Corporation will report a(n):

A) realized gain on the sale of $300,000.

B) unrealized gain on the sale of $300,000.

C) realized gain on the sale of $244,000.

D) unrealized gain on the sale of $244,000.

23) Daniel Company purchased 30% of the outstanding shares of Clooney Corporation on January 1 at a cost of $600,000. Clooney Corporation reported net income of $95,000 and paid total dividends of $25,000 for the year. At the end of the year, Clooney shares had a current fair value of $590,000. After all necessary adjusting entries are made for the year, the balance in Daniel Company's Equity-Method Investment account will be:

A) $590,000.

B) $621,000.

C) $628,500.

D) $638,500.

24) On January 1, 2014, Conner Corporation purchased 70,000 of the 210,000 shares of outstanding stock of JJ Company for $600,000. Net income reported by JJ Company for 2014 was $600,000. Dividends paid by JJ Company during 2014 were $150,000. The Equity-Method Investment will be reported on Conner Corporation's December 31, 2014 balance sheet in the amount of:

A) $600,000.

B) $650,000.

C) $750,000.

D) $960,000.

25) On January 1, 2014, Rod Corporation purchased 35% of the outstanding stock of Alamo Corporation for $500,000. Net income reported by Alamo for 2014 was $200,000. Dividends paid by Alamo during 2014 were $40,000. The amount of investment revenue that Rod should recognize for 2014 is:

A) $14,000.

B) $56,000.

C) $70,000.

D) $84,000.