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Grant, Inc acquired 30% of South Co.'s voting stock for $200,000 on January 2, Year 1 Grants 30% interest in South gave Grant the ability
Grant, Inc acquired 30% of South Co.'s voting stock for $200,000 on January 2, Year 1 Grants 30% interest in South gave Grant the ability to exercise significant influence over South's operating and financial policies. During Year 1, South eamed $80.000 and paid dividends of $50,000. South reported earnings of $100,000 for the six months ended June 30. Year 2 . and $200,000 for the year ended December 31, Year 2, On July 1. Year 2, Grant sold half of its stock in South for $150,000 cash. South pald dividends of $60,000 on October 1 , Year 2 . In its Year 2 income statement, what amount should Grant report as gain from the sale of half of its investment? $24,500 $30,500 $35,000 $45.500
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