Business, 05.05.2021 20:50 Jalyn1060

Carla Vista, Inc. acquired 30% of Metlock Corporation's voting stock on January 1, 2021 for $950000. During 2021, Metlock earned $385000 and paid dividends of $240000. Carla Vista's 30% interest in Metlock gives Carla Vista the ability to exercise significant influence over Metlock's operating and financial policies. During 2022, Metlock earned $485000 and paid cash dividends of $140000 on April 1 and $140000 on October 1. On July 1, 2022, Carla Vista sold half of its stock in Metlock for $645000 cash. What should be the gain on sale of this investment in Rich's 2011 income statement?
a. $64,000.
b. $55,000.
c. $49,000.
d. $40,000.

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Carla Vista, Inc. acquired 30% of Metlock Corporation's voting stock on January 1, 2021 for $950000....

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