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On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During...

On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment in Bunker Company for $112,970 cash. Calculate the amount of the realized gain reported in Lear Company's 2022 income statement resulting from the sale of the Bunker Company stock. Do not enter your answer in carmen with a minus sign in front of your number.

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Answer #1
Cost of purchased stock $        360,000
Add: Share in net income in 2021 (129000*37%) $          47,730
Less: Dividend received in 2021 (43000*37%) $        (15,910)
Book value of equity investment at the end of 2021 $        391,820
Book value of equity investment at beginning of 2022 $        391,820
Add: Share in net income in 2022 (81000*37%) $          29,970
Less: Dividend received in 2022 (17000*37%) $          (6,290)
Book value of equity investment at the end of 2022 $        415,500
Cash received from one-fourth investment sold $        112,970
Less: Book value of equity investment for one-fourth investment sold (415500*1/4) $        103,875
Amount of the realized gain reported in Lear Company's 2022 income statement resulting from the sale of the Bunker Company stock $            9,095
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