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What should the gain be on sale of the investment in pharoah

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Pharoah, Inc. acquired 30% of Sheridan Corporation's voting stock on January 1, 2021 for $990000. During 2021, Sheridan earned $403000 and paid dividends of $246000. Pharoah's 30% interest in Sheridan gives Pharoah the ability to exercise significant influence over Sheridan's operating and financial policies. During 2022, Sheridan earned $485000 and paid cash dividends of $170000 on April 1 and $170000 on October 1. On July 1, 2022, Pharoah sold half of its stock in Sheridan for $672000 cash.

Problem 1: What should the gain be on sale of this investment in Pharoah's 2022 income statement?

Reference no: EM132685852

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