Question
TB MC Qu. 18-106 (Algo) On June 27, 2021, Cara Van Travel distributed... On June 27, 2021, Cara Van Travel distributed to its common shareholders
TB MC Qu. 18-106 (Algo) On June 27, 2021, Cara Van Travel distributed...
On June 27, 2021, Cara Van Travel distributed to its common shareholders 560,000 outstanding common shares of its investment in Constance Noring Pillows. The book value on Van's books of Noring's $1 par common stock was $3.60 per share. Immediately after the distribution, the market price of Noring's stock was $4.10 per share. In its income statement for the year ended June 30, 2023, what amount should Noring report as gain on disposal of the stock (ignore taxes)?
Multiple Choice
-
$0
-
$280,000
-
$2,016,000
-
$2,296,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started