Question
Sheridan, Inc. acquired 20% of Windsor Corporation's voting stock on January 1, 2021 for $1010000. During 2021, Windsor earned $406000 and paid dividends of $264000.
Sheridan, Inc. acquired 20% of Windsor Corporation's voting stock on January 1, 2021 for $1010000. During 2021, Windsor earned $406000 and paid dividends of $264000. Sheridan's 20% interest in Windsor gives Sheridan the ability to exercise significant influence over Windsor's operating and financial policies. During 2022, Windsor earned $485000 and paid cash dividends of $138000 on April 1 and $138000 on October 1. On July 1, 2022, Sheridan sold half of its stock in Windsor for $633000 cash. What should the gain be on sale of this investment in Sheridan's 2022 income statement?
| $103350. |
| $87800. |
| $128000. |
| $113800 |
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