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What is the impact on Jackson net income

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Question - On January 3, 2021, Jackson Company purchased 25% of the 100,000 shares of common stock of Silver Corporation, paying $1,250,000. There was no goodwill or other cost allocation associated with the investment. Jackson has significant influence over Silver. During 2021, Silver reported net income of $400,000 and paid dividends of $120,000. On January 4, 2022, Jackson sold 15,000 shares for $810,000, reducing its interest from 25 to 10 percent and thus losing its significant influence.

2022 Silver' net income was $500,000 and dividends $160.000. Fair value of Silver' stock was $552,000 on December 31, 2022.

Required - What is the impact on 2022 Jackson' net income due to this investment in Silver?

Reference no: EM133143568

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