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What should the gain be on sale of this investment

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Question - Oriole, Inc. acquired 40% of Skysong Corporation's voting stock on January 1, 2021 for $900000. During 2021, Skysong earned $436000 and paid dividends of $268000. Oriole's 40% interest in Skysong gives Oriole the ability to exercise significant influence over Skysong's operating and financial policies. During 2022, Skysong earned $521000 and paid cash dividends of $144000 on April 1 and $144000 on October 1. On July 1, 2022, Oriole sold half of its stock in Skysong for $633000 cash.

Required - What should the gain be on sale of this investment in Oriole's 2022 income statement?

a. $183000.

b. $149400.

c. $126100.

d. $100600.

Reference no: EM132728084

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