Question
Cullumber, Inc. acquired 20% of Marigold Corporation's voting stock on January 1, 2021 for $930000. During 2021, Marigold earned $400000 and paid dividends of $248000.
Cullumber, Inc. acquired 20% of Marigold Corporation's voting stock on January 1, 2021 for $930000. During 2021, Marigold earned $400000 and paid dividends of $248000. Cullumber's 20% interest in Marigold gives Cullumber the ability to exercise significant influence over Marigold's operating and financial policies. During 2022, Marigold earned $524000 and paid cash dividends of $174000 on April 1 and $174000 on October 1. On July 1, 2022, Cullumber sold half of its stock in Marigold for $684000 cash. What should the gain be on sale of this investment in Cullumber's 2022 income statement?
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