BAYDEN Company

BAYDEN Company provided to you the following information pertaining to the dividends from its non-trading investments in ordinary shares during the year ended December 31, 2020:

The entity owned a 10% interest in TRAMP Company, which declared a cash dividend of 600,000 on November 30, 2020 to shareholders of record on December 31, 2020 and payable on January 15, 2021.

On October 15, 2020, the entity received a liquidating dividend of 100,000 from OWBAMAH Company. BAYDEN owned a 5% interest in OWBAMAH.

BAYDEN Company (PLEASE ANSWER THE FOLLOWING QUESTIONS THANK YOU)

Question 1: What amount of dividend income should be reported by BAYDEN for the current year 2020?

Question 2: Assuming the 10% interest in TRAMP is sold by BAYDEN to another shareholder onDecember 15, 2020, the shares has a carrying amount of 300,000 and it was sold for 400,000, how much is the gain on sale of investment?

Question 3: Assuming the 10% interest in TRAMP is sold by BAYDEN to another shareholder on January 13, 2021, the shares has a carrying amount of 300,000 and it was sold for 400,000, how much is the gain on sale of investment?