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Required information Prancer Inc. ( Prancer ) purchased 4 0 , 0 0 0 voting shares out of Starter Corporation's 5 0 , 0 0
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Prancer Inc. Prancer purchased voting shares out of Starter Corporation's outstanding voting shares for $ on January
On the date of acquisition, Starter's common shares and retained earnings were valued at $ and $ respectively. Starter's book values approximated its fair values on the acquisition date with the exception of a patent and a trademark, neither of which had been previously recorded. The fair values of the patent and trademark on the date of acquisition were $ and $ respectively.
On January Prancer sold shares of Starter on the open market for $
Prancer uses the equity method to account for its investment in Starter.
Which of the following is the amount of gain or loss on the sale of the shares?
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Prey
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