3. David Inc acquired 30% of ryan corp's voting stock as of jan 1, 2010 for 800000. During 2010. Ryan earned 320000 and paid dividends of 200000 to its shareholders. David's 30% interest in ryan gives david the ability to exercise significant influence over ryan's operating and financial policies. During 2011. ryan earned 400000 and paid dividends of 120000 on april 1 and 120000 on october 1. on December 21, 2011, david sold half of its stock in ryan for $528,000 cash.

3a) Before income taxes, what amount should david include in its 2010 income statement as a result of the investment.

3b) The carrying amount of this investment in david's december 31, 2010 balance sheet would be:

3c) What should the gain on sale of this investment in David's 2011 income statement