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On January 1, 2013, Pierce, Inc., purchased 15.000 shares of Marion Company for $435,000, giving Pierce 10 percent ownership of Marion. On January 1, 2014.

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On January 1, 2013, Pierce, Inc., purchased 15.000 shares of Marion Company for $435,000, giving Pierce 10 percent ownership of Marion. On January 1, 2014. Pierce purchase an additional 30,000 shares (20 percent) for $1.000.000. This latest purchase gave Pierce the ability to apply significant influence over Marion. The original 10 percent investment was categorized as an available-for-sale security. Any excess of cost over book value acquired tor cither investment was attributed solely to goodwill. Marion reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years. Dividends are declared and paid in the same period. On July 1, 2015. Pierce sells 9,000 shares of this investment for $40 per share, thus reducing its interest from 30 to 24 percent. However, the company retains the ability to significantly influence Marion. Using the equity method and average book value to compute any gain or loss on sale, what amounts appear in Pierce's 2015 income statement

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