Jabiru Corporation purchased a 20% interest in Fish Company common stock on January 1, 2002 for $300,000. This investment was accounted for using the complete equity method and the correct balance in the Investment in Fish account on December 31, 2004 was $440,000. The original excess purchase transaction included $60,000 for a patent amortized at a rate of $6,000 per year. In 2005, Fish Corporation had net income of uniform $4,000 per month and paid $20,000 of dividends in May.If Jabiru sold one-half of its investment in Fish on August 1, 2005 for $500,000, how much gain was recognized on this transaction?

a) $278,950

b) $280,000

c) $280,950

d. $282,000