On December 31, 2010, Tanner Corp

question 21

Essay

On December 31, 2010, Tanner Corp. acquired a 20% interest in Gantry Corp. for $800,000 and appropriately applied the equity method. During 2011, Gantry had net income of $150,000 and paid cash dividends of $5,000. On last day of 2011, Tanner sold one-half of its investment in Gantry Corp. for $620,000. How much should Tanner report on its income statement for the year ending December 31, 2011? Show your work.

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