This Question: 1 pt 3 of 21 (0 complete) This Quiz: 25 pts possible On January 1

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This Question: 1 pt 3 of 21 (0 complete) This Quiz: 25 pts possible On January 1, 2016, Benson Corporation paid $830,000 to purchase 50% of the outstanding stock of Westin Company. Westin Company reported net income of $170,000 for the year ending December 31, 2016 and declared and paid cash dividends of $60,000 during 2016. On January 1, 2017, Benson Corporation sells its entire investment in Westin Company for $1,400,000. Benson Corporation will report a(n): O A. unrealized gain on the sale of $515,000. O B. realized gain on the sale of $570,000. ° C. realized gain on the sale of $515,000 D. unrealized gain on the sale of $570,000.

Explanation / Answer

Journal entry :

so answer is c) Realized gain on the sale of $515000

Date accounts & explanation debit credit Cash 1400000 Realized gain 515000 Investment in westin company 885000

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