You are the 20 percent noncontrolling shareholder in Sawyer Corporation. Under an agreement at the time of acquisition, Sawyer distributes half of the noncontrolling interest in net income as dividends each year. Sawyer holds a valuable tract of land, carried on its books at $100,000. This land is in great demand as a site for a shopping mall in a rapidly growing community. An outside developer offered $4 million for the site. Sawyer's parent company is considering buying the land from Sawyer for $5 million, then leasing it under a 75-year lease to the developer. The annual lease payment to the parent company would be $750,000.
Required
As the noncontrolling shareholder in Sawyer, which transaction provides the most dividends? Explain.