On January 1, 2022, Halstead, Incorporated, purchased 78,000 shares of Sedgwick Company common stock for...
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Accounting
On January 1, 2022, Halstead, Incorporated, purchased 78,000 shares of Sedgwick Company common stock for $1,430,000, 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.
On July 1, 2024, Halstead sells 12,480 shares of this investment for $22 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence.
Required:
Determine the amounts that would appear on Halsteads 2024 income statement relating to its ownership and partial sale of its investment in Sedgwicks common stock.
Total income accrual (no unearned gains) : $139,150Gain or Loss? on sales of shares:
Please find gain or loss on sale of shares, thanks.
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