Dodge inc. Acquired 15% (15,000) Shares of Gates Corp. on January 1, 2017 for $105,000 when the

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Dodge inc. Acquired 15% (15,000) Shares of Gates Corp. on January 1, 2017 for $105,000 when the book value of Gates was $600,000 and the fair market value was $700,000. During 2017, Gates reported net income of $150,000 and paid dividends of $50,000. The fair market value of gates stock rose to $800,000 as of December 31, 2017. Dodge used the fair value method to record its investment in gates in 2017.

On January 1, 2018 Dodge purchased an additional 25% (25,000) shares of Gates for $200,000 which resulted in Dodge having significant influence over Gates. Any excess cost over book value was attributed to goodwill with an indefinite life. Dodge changed the equity method to account for its investment in Gates in 2018. During 2018 Gates reported net income of $200,000 and paid quarterly dividends of %20,000. The amounts assumed to have occurred evenly throughout the year. On june 30th, 2018 Dodge sold 10,000 shares of Gates for $100,000.

Based on the facts calculate the following;

A. The income reported by Dodge for 2017 with regards to the gate investment.

B. Balance in the investment of Gates just prior to the sale

C. Gain (loss) on sale of Gates stock

D. Balance in investment in gates at December 31, 2018.