Corporation owns equity-method investments in several companies.

WatsonWatson

paid

$1,300,000

to acquire a

30%

investment in

SlaterSlater

Software Company.

SlaterSlater

reported net income of

$680,000

for the first year and declared and paid cash dividends of

$450,000.

Without making journal entries, record the investment transactions directly in the

WatsonWatson

T-account, Equity-method Investment. Assume that after all the noted transactions took place,

WatsonWatson

sold its entire investment in

SlaterSlater

for cash of

$2,900,000.

How much is

WatsonWatson's

gain or loss on the sale of the investment?

Post the investment transactions and determine the balance in

WatsonWatson's

T-account for Equity-method Investment.

Equity-method Investment

Assume that after all the noted transactions took place,

WatsonWatson

sold its entire investment in

SlaterSlater

for cash of

$2,900,000.

How much is

WatsonWatson's

gain or loss on the sale of the investment?

If Watson sold its entire investment in Slater for cash of $2,900,000, it would record a

of $

.