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Business, 25.02.2020 22:15 AgentPangolin

Lee, Inc. acquired 30% of Polk Corp.'s voting stock on January 1, 2016 for $100,000. During 2016, Polk earned $40,000 and paid dividends of $25,000. Lee's 30% interest in Polk gives Lee the ability to exercise significant influence over Polk's operating and financial policies. During 2017, Polk earned $50,000 and paid dividends of $15,000 on April 1 and $15,000 on October 1. On July 1, 2017, Lee sold half of its stock in Polk for $66,000 cash. What should the gain on sale of this investment in Lee's 2017 Income Statement be? a) $10,000 b) $16,000 c) $13,750 d) $12,250

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Lee, Inc. acquired 30% of Polk Corp.'s voting stock on January 1, 2016 for $100,000. During 2016, Po...

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