Question: On January 3 , 2 0 2 3 , Roberts Company purchased 3 0 , 0 0 0 shares ( 3 0 % ) of

On January 3,2023, Roberts Company purchased 30,000 shares (30%) of the 100,000 shares of common stock of Thomas
Corporation, paying $1,500,000. There was no goodwill or other cost allocation associated with the investment. Roberts has
significant influence over Thomas. During 2023, Thomas reported net income of $300,000 and paid dividends of $100,000. On
January 4,2024, Roberts sold 15,000 shares for $810,000, reducing its interest from 30 to 15 percent and thus losing its significant
influence.
2024 Thomas' net income was $400,000 and dividends $120,000. Fair value of Thomas' stock was $825,000 on December 31,
What is the impact on 2024 Roberts' net income due to this investment in Thomas?
$93,000.
$135,000.
$50,000.
$78,000.
On January 3,2023, Roberts Company purchased 30,000 shares (30%) of the

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