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Campton co, purchased 30% of Petrol's inc voting stock on January 1 year 1 for 100,000 during year 1, Petrol earned 40,000 and paid dividend
| Campton co, purchased | 30% | of Petrol's inc voting stock on January 1 year 1 for | |||
| 100,000 | during year 1, Petrol earned | 40,000 | and paid dividend | 25,000 | |
| Campton's | 30% | interest in Petrol gives Campton the ability to exercise significant | |||
| influence over Petrol's operating and financial policies and Campton used the equity method for its | |||||
| 30% | investment in Petrol. During year 2 Petrol earned | 50,000 | |||
| evenly throughout the year and paid dividends of | 15,000 | on April 1 and | 15,000 | ||
| October 1. On July 1, year 2 Campton sold half its stock in Petrol for | 66,000 | cash | |||
| what should be the gain on sale of this investment in Campton's year 2 income statement? | |||||
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