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On June 1, 2016, Blue Co distributed to its common stockholders 290,000 outstanding common shares of its investment in Red, Inc, an unrelated party The

On June 1, 2016, Blue Co distributed to its common stockholders 290,000 outstanding common shares of its investment in Red, Inc, an unrelated party The book value on Blues books of Red's $1 par common stock was $220 per share Immediately after the declaration, the market price of Red's stock was $310 per share In its income statement for the year ended June 30, 2016, what amount should Blue report as gain before income taxes on disposal of the stock?


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