Packaging Inc. owns 18,000 shares of Enbridge Inc. On Dec 31, 2018, Enbridge's common shares =...

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Packaging Inc. owns 18,000 shares of Enbridge Inc. On Dec 31, 2018, Enbridge's common shares = $120,000 (total outstanding shares 20,000) and retained earnings $150,000. On January 1, 2019, Packaging sold 3,600 shares from its holdings in Enbridge for $70,000. The balance in the investment in the Enbridge account was $290,000 (equity basis). Acquisition deferential was allocated as 30% to machinery (remaining life 10 yrs), 40% equipment (remaining life 5 yrs), and 30% to goodwill. Enbridge's NI for 2019 was $100,000 and paid dividends of $40,000. There was a goodwill impairment loss of $592 in 2019. The amount of gain or loss on selling 3,600 shares on January 1, 2019, is? = Packaging Inc. owns 18,000 shares of Enbridge Inc. On Dec 31, 2018, Enbridge's common shares = $120,000 (total outstanding shares 20,000) and retained earnings $150,000. On January 1, 2019, Packaging sold 3,600 shares from its holdings in Enbridge for $70,000. The balance in the investment in the Enbridge account was $290,000 (equity basis). Acquisition deferential was allocated as 30% to machinery (remaining life 10 yrs), 40% equipment (remaining life 5 yrs), and 30% to goodwill. Enbridge's NI for 2019 was $100,000 and paid dividends of $40,000. There was a goodwill impairment loss of $592 in 2019. The amount of gain or loss on selling 3,600 shares on January 1, 2019, is? =

Answer rating: 100% (QA)

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