Use the data given in S8-3. Assume that on January 1, 2015, Sperrey Motors sold half its investment in Phase Motors. Te sale price was $115 million. Compute Sperrey Motors’ gain or loss on the sale.
In S8-3, Suppose on January 1, 2014, Sperrey Motors paid $260 million for a 35% investment in Phase Motors. Assume Phase earned net income of $34 million and declared and paid cash dividends of $17 million during 2014.