Rich, Inc. acquired 30% of Doane Corporation's voting stock on January 1, 2014 for $800,000. During 2014, Doane earned $320,000 and paid dividends of $200,000. Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. During 2015, Doane earned $400,000 and paid dividends of $120,000 on April 1 and $120,000 on October 1. On July 1, 2015, Rich sold half of its stock in Doane for $528,000 cash.

115.Before income taxes, what amount should Rich include in its 2014 income statement as a result of the investment?

c.$96,000.

116.The carrying amount of this investment in Rich's December 31, 2014 balance sheet should be

b.$836,000.

117.What should be the gain on sale of this investment in Rich's 2015 income statement?

c.$98,000.

115 320k*30%=96k

116.equity invest 800k

Cash 800k

Cash 60k=30%*200k

Equity investment 60k

Equity investment 96k=30%*320K

Investment revenue 96k then use T-account answer will 836k

117. 528k-836/2=110K??? but answer key said 98000 but I need explanationhow to navigate correct answer Q117 thanks