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Oriole, Inc. acquired 20% of Sheffield Corporation's voting stock on January 1, 2021 for $1030000. During...

Oriole, Inc. acquired 20% of Sheffield Corporation's voting stock on January 1, 2021 for $1030000. During 2021, Sheffield earned $409000 and paid dividends of $256000. Oriole's 20% interest in Sheffield gives Oriole the ability to exercise significant influence over Sheffield's operating and financial policies. During 2022, Sheffield earned $509000 and paid cash dividends of $156000 on April 1 and $156000 on October 1. On July 1, 2022, Oriole sold half of its stock in Sheffield for $669000 cash. Before income taxes, what amount should Oriole include in its 2021 income statement as a result of the investment?

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It is mentioned that Oriole's twenty percent interest in Sheffield gives Oriole the ability to exercise significant influence, hence equity method of accounting shall apply

The amount Oriole should include in its 2021 income statement as a result of the investment = $409000 x 20%= $81,800

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