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Use the Following Information for Questions

question 85

Multiple Choice

Use the following information for questions.
On January 1, 2017, Abalone Ltd.acquired 30% of Flounder Corp.'s common shares for $240,000.During 2017, Flounder reported net income of $100,000 and paid total dividends of $60,000.Abalone's 30% interest in Flounder gives Abalone the ability to exercise significant influence over their operating and financial policies.During 2018, Flounder reported net income of $150,000 and paid total dividends of $30,000 on April 1 and $40,000 on October 1.On July 1, 2018, Abalone sold half of its shares in Flounder for $158,000 cash.
-The gain on sale of this investment in Abalone's 2018 income statement should be

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Definitions:

Tender Delivery

The process of formally presenting goods or documents to a designated party, often in fulfillment of a contractual obligation.

Consequential Damage

Indirect losses that occur as a result of a breach of contract or other wrongful act, beyond the immediate damage or loss incurred.

Cash Payment

A transaction where the payment for goods or services is made using physical currency or through an immediate electronic transfer of funds.

Grand Opening Sale

A promotional event conducted to attract customers to a new business or service, offering products at reduced prices for a limited time to generate interest and traffic.