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What would be the effect on net income of this transaction

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Question - Sheppard Corporation On January 3, 2016, Sheppard Corporation purchased 15% of Meredith Corporation's common stock for$62,000. The investment was classified as available for sale. Meredith's net income for the years ended December 31 2016 and 2017 were $18,000 and $56,000 respectively. Meredith declared no dividends during 2016; however, during 2017, the company declared a $70,000 dividend. On December 31, 2016, the fair value of Meredith's stock that Sheppard Corporation owned had increased to$73,000; in 2017, it increased again to $75,000. If Sheppard sold all of its shared of Meredith for 75000 at the of 2017. What would be the effect on net income of this transaction?

Reference no: EM132600509

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