Company P Acquired 30% of Company S's Common Stock on January

Multiple Choice

Company P acquired 30% of Company S's common stock on January 1, 20X8, for $100,000.Company P's 30% interest constitutes significant influence.There is no excess of cost over book value.During 20X8, Company S earned $40,000 and paid dividends of $25,000.During 20X9, Company S's $50,000 income was earned evenly, and the company paid dividends of $15,000 on April 1 and $15,000 on October 1.On July 1, 20X9, Company P sold half of its interest in Company S for $66,000 cash; thus, Company P no longer had significant influence The gain on the sale of the investment in Company P's 20X9 income statement should be ____.

A) ​$16,000
B) ​$13,700
C) ​$12,250
D) ​$10,000