On June 27, 2018, Cara Van Travel distributed to its common shareholders 400,000 outstanding common shares of its investment in Constance Noring Pillows. The book value on Van's books of Noring's $1 par common stock was $2 per share. Immediately after the distribution, the market price of Noring's stock was $2.50 per share. In its income statement for the year ended June 30, 2020, what amount should Noring report as gain on disposal of the stock (ignore taxes)?

Answer rating: 100% (QA)

June 27 2018 Cara Van Travel distributed c... View the full answer