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Sandhill, Inc. acquired 30% of Whispering Corporation's voting stock on January 1, 2021 for $1100000. During 2021, Whispering earned $409000 and paid dividends of $256000.
Sandhill, Inc. acquired 30% of Whispering Corporation's voting stock on January 1, 2021 for $1100000. During 2021, Whispering earned $409000 and paid dividends of $256000. Sandhill's 30% interest in Whispering gives Sandhill the ability to exercise significant influence over Whispering's operating and financial policies. During 2022, Whispering earned $476000 and paid cash dividends of $138000 on April 1 and $138000 on October 1. On July 1, 2022, Sandhill sold half of its stock in Whispering for $630000 cash. What should the gain be on sale of this investment in Sandhill's 2022 income statement? $57050 O $42050. O $80000. $20900
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