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POP Corp. paid $328,000 cash for a 40% interest in SON Limited on January 1, Year 6 and based on this percentage ownership, POP has
POP Corp. paid $328,000 cash for a 40% interest in SON Limited on January 1, Year 6 and based on this percentage ownership, POP has significant influence over SON. During Year 6, SON declared, but did not yet pay, cash paid dividends of $122,000. Dividends will be paid in early January, Year 7. SON reported profit as follows:
After-tax Profit before discontinued operations $528,500
Discontinued operations gain (net of tax) 105,000
OCI Loss booked on FV-OCI Investment (net of tax) (13,000)
Profit $620,500
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