Question
Crane, Inc. acquired 30% of Bramble Corporation's voting stock on January 1, 2021 for $1070000. During 2021, Bramble earned $424000 and paid dividends of $224000.
Crane, Inc. acquired 30% of Bramble Corporation's voting stock on January 1, 2021 for $1070000. During 2021, Bramble earned $424000 and paid dividends of $224000. Crane's 30% interest in Bramble gives Crane the ability to exercise significant influence over Bramble 's operating and financial policies. During 2022, Bramble earned $479000 and paid cash dividends of $146000 on April 1 and $146000 on October 1. On July 1, 2022, Crane sold half of its stock in Bramble for $627000 cash. What should the gain be on sale of this investment in Crane's 2022 income statement?
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