Use the Following Information to Answer the Question(s) Below $$\begin{array} { | l | l | } \hline\text { Gain on Sale } & \text { Income from Brush } \\\hline\$ \$ 5,700 & \$ 59,400\\\hline\end{array}$$

question 27

Multiple Choice

Use the following information to answer the question(s) below.

Bird Corporation purchased an 80% interest in Brush Corporation on July 1, 2013 at its book value, and on January 1, 2014 its Investment in Brush account was $300,000, equal to its book value. Brush's net income for 2014 was $99,000 (earned uniformly) ; no dividends were declared. On March 1, 2014, Bird reduced its interest in Brush by selling a 20% interest, one-fourth of its investment, for $84,000.

-If Bird uses a "beginning-of-the-year" sale assumption,its gain on sale and income from Brush for 2014 will be

• A) \[\begin{array} { | l | l | }
• \hline\text { Gain on Sale } & \text { Income from Brush } \\
• \hline\$ \$ 5,700 & \$ 59,400\\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Gain on Sale } & \text { Income from Brush } \\
• \hline\$ \$ 5,700 & \$ 62,700\\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline\text { Gain on Sale } & \text { Income from Brush } \\
• \hline\$ 9,000 & \$ 59,400\\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline\text { Gain on Sale } & \text { Income from Brush } \\
• \hline\$ 9,000 & \$ 62,700\\
• \hline
• \end{array}\]

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Definitions:

Home Environments

The physical, emotional, and social context provided within a residence that affects the development and behavior of its inhabitants.

Genetic Inheritance

The process by which genetic information is passed on from parents to their offspring, determining certain traits and predispositions.

Socioeconomic Status

A combined measure based on an individual's or family's economic and social position in relation to others, based on income, education, and occupation.

Ethnicity

A category of identification based on common nationality, cultural heritage, traditions, and language.