Use the Following Information for Questions 115 Through 117

question 70

Multiple Choice

Use the following information for questions 115 through 117.
Rich, Inc. acquired 30% of Doane Corporation's voting stock on January 1, 2014 for $800,000. During 2014, Doane earned $320,000 and paid dividends of $200,000. Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. During 2015, Doane earned $400,000 and paid dividends of $120,000 on April 1 and $120,000 on October 1. On July 1, 2015, Rich sold half of its stock in Doane for $528,000 cash.
-What should be the gain on sale of this investment in Rich's 2015 income statement?

• A) $128,000.
• B) $110,000.
• C) $98,000.
• D) $80,000.

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Definitions:

Global Leadership Competency

The ability to influence and guide individuals or groups in a global context, understanding cross-cultural nuances and adapting leadership styles to diverse environments.

Contextual Resilience

The capacity of an entity or system to adapt and thrive in the face of evolving external pressures and changes in its environment.

Protection Money

Payments made to a group or individual, typically in an illegitimate context, for protection from harm or harassment.

Degree Of Presence

The extent to which an entity is noticeable or influential in a particular environment or context.