38.

During 2021 Blossom Company purchased 9800 shares of Sunland Inc. for $28 per share. During the year Blossom Company sold 2400 shares of Sunland, Inc. for $33 per share. At December 31, 2021 the market price of Sunland, Inc.s stock was $26 per share. What is the total amount of gain/(loss) that Blossom Company will report in its income statement for the year ended December 31, 2021 related to its investment in Sunland, Inc. stock?

a. $-19600

b. $-2800

c. $12000

d. $-7600

42.On January 2, 2021 Oriole Company purchased 30% of the outstanding common stock of Jobs, Inc. and subsequently used the equity method to account for the investment. During 2021 Jobs, Inc. reported net income of $1170000 and distributed dividends of $495000. The ending balance in the Investment in Oriole Company account at December 31, 2021 was $915000 after applying the equity method during 2021. What was the purchase price Oriole Company paid for its investment in Jobs, Inc?

a. $1117500

b. $415500

c. $712500

d. $1414500

44. Sunland Corporation purchased 31000 shares of common stock of the Sherman Corporation for $46 per share on January 2, 2020. Sherman Corporation had 100000 shares of common stock outstanding during 2021, paid cash dividends of $156000 during 2021, and reported net income of $560000 for 2021. Sunland Corporation should report revenue from investment for 2021 in the amount of

a. $190960.

b. $48360.

c. $125240.

d. $173600.