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Assume that on December 31, 2020, parents Investment in Sub. Account has a balance of SR 400,000. Also, assume that parents 80% interest in Sub

Assume that on December 31, 2020, parents Investment in Sub. Account has a balance of SR 400,000. Also, assume that parents 80% interest in Sub has a fair value of SR500, 000. On January 1, 2021, Parent sells half (remaining 40%) of Sub shares for SR 240, 000.

Required: Compute gains on that sale transaction.

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