Question
Trinity Inc. owns 100 percent of Lindell Company's 30,000 voting shares. Trinity sells 12,000 of its Lindell shares on the open market for $60,000
Trinity Inc. owns 100 percent of Lindell Company's 30,000 voting shares. Trinity sells 12,000 of its Lindell shares on the open market for $60,000 on September 1. On September 1, Trinity's internal accounting records shows a $160,000 equity method balance for its investment in Lindell. How should Trinity record the difference between the sale proceeds and the carrying amount of the shares sold?
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Advanced Accounting
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