In: Accounting
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Equity method income accrual for 2018 | |
25% of $589,000 for ½ year | $ 73,625 |
21% of $589,000 for ½ year | $ 61,845 |
Total income accrual | $ 135,470 |
Gain on sale (Refer Below) | $ 118,680 |
Total income statement effect–2018 | $ 254,150 |
Gain on sale of 13,800 shares of Halstead | |
Initial acquisition- 2016 | $ 1,510,000 |
25% income accrual- 2016: (25% × $362,000) | $ 90,500 |
Dividend - 2016 (25%*137,000) | $ (34,250) |
25% income accrual- 2017: (25% × $505,000) | $ 126,250 |
Dividend - 2017 (25%*134,000) | $ (33,500) |
25% income accrual for ½ year- 2018 | $ 73,625 |
(25%*589000/2) | |
25% of dividends for ½ year- 2018 | $ (20,625) |
(25%*165000/2) | |
Book value of 80,000 shares on July 1, 2018 | $ 1,712,000 |
Cash proceeds from the sale of 13,800 shares | $ 414,000 |
(13,800*30) | |
Less: Book value of shares sold | $ 295,320 |
($1,712,000*(13,800 ÷ 80,000)) | |
Gain on Sale | $ 118,680 |