On January 1, 2016, Halstead, Inc., purchased 71,000 shares of Sedgwick Company common stock for...
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Accounting
On January 1, 2016, Halstead, Inc., purchased 71,000 shares of Sedgwick Company common stock for $1,485,000, giving Halstead 25 percent ownership and the ability to apply significant influence over Sedgwick. Any excess of cost over book value acquired was attributed solely to goodwill.
Sedgwick reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years. Dividends are declared and paid in the same period.
Net Income
Annual Cash Dividends (paid quarterly)
2016
$407,000
$124,000
2017
393,000
159,000
2018
606,000
149,000
On July 1, 2018, Halstead sells 10,000 shares of this investment for $27 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence.
Determine the amounts that would appear on Halstead's 2018 income statement relating to its ownership and partial sale of its investment in Sedgwick's common stock.
As total income accrual (no unearned gains): As ____ on sales of shares:
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