Question
On January 1, 2019, Halstead, Inc., purchased 71,000 shares of Sedgwick Company common stock for $1,554,000, giving Halstead 25 percent ownership and the ability to
On January 1, 2019, Halstead, Inc., purchased 71,000 shares of Sedgwick Company common stock for $1,554,000, giving Halstead 25 percent ownership and the ability to apply significant influence over Sedgwick. Any excess of cost over book value acquired was attributed solely to goodwill. Sedgwick 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. Net Income Annual Cash Dividends (paid quarterly) 2019 $375,000 $112,000 2020 442,000 154,000 2021 619,000 173,000 On July 1, 2021, Halstead sells 11,360 shares of this investment for $27 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence. Determine the amounts that would appear on Halsteads 2021 income statement relating to its ownership and partial sale of its investment in Sedgwicks common stock. (Round your intermediate calculations to the nearest whole number.)
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