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Suppose on January 1, 2016, Spring Motors paid $460 million for a 40% investment in Tripp Motors. Assume Tripp earned net income of $70 million
Suppose on January 1, 2016, Spring Motors paid $460 million for a 40% investment in Tripp Motors. Assume Tripp earned net income of $70 million and paid cash dividends of $20 million during 2016. (Click the icon to view the Equity Method Investment T-account.) Assume that on January 1, 2017, Spring Motors sold half its investment in Tripp Motors. The sale price was $165 million Compute Spring Motors' gain or loss on the sale. Let's compute the gain or loss on the sale of the investment (Round amounts to the nearest million. Use parentheses or a minus sign when showing a loss.) million Sale proceeds Less: Carrying amount of investment..... million on sale of investment..... million
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