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Please help. TIA On January 1, 2022, Halsteed, Incorporated, purchased 75,000 shores of Sedgwick Company common stock for giving Holstead 2S percent ownership end the
Please help. TIA
On January 1, 2022, Halsteed, Incorporated, purchased 75,000 shores of Sedgwick Company common stock for giving Holstead 2S percent ownership end 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 ere assumed to hove occurred evenly throughout these years. Dividends are declared end paid in the some period. Year 2022 2023 2024 Net Income S 34e,a a sea, a Annual Cash Dividends (paid quarterly) 12,ae , eae 16e,eae On July 1, 2024, Helsteed sells 12,000 shares of this investment for S2S per share, thus reducing its interest from 2S to 21 percent, but maintaining its significant influence. Required: Determine the amounts that would appear on Halstead's 2024 income statement relating to its ownership and partial sale of its investment in Sedgwick's common stock. Answer is complete but not entirely correct. Total income accrual (no unearned gains) gain on sale of shares s 138,000 e s 35,200
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