Use the following information for questions 18 through 20 Rich, Inc. acquired 30% of Doane Corporation's voting stock on January 1, 2021 for $1,000,000. During 2021, Doane earned $400,000 and paid dividends of $250,000. Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. During 2022, Doane earned $500,000 and paid cash dividends of $150,000 on April 1 and $150,000 on October 1. On July 1, 2022, Rich sold half of its stock in Doane for $660,000 cash. 18. Before income taxes, what amount should Rich include in its 2021 income statement as a result of the investment? a. $400,000 b. $250,000 c. $120,000 d. $75,000 19 The carrying amount of this investment in Rich's December 31, 2021 balance sheet should be a. $1,000,000 b. $1,045,000 C. $1,120,000 d. $1,150,000. 20. What should the gain be on sale of this investment in Rich's 2022 income statement? a $160,000 b. $137,500. C. $122.500 d. $100,000