The Parent Company purchased the common stock of Sub Company in a series of open-market purchases in

Fantastic news! We've Found the answer you've been seeking!

Question:

The Parent Company purchased the common stock of Sub Company in a series of open-market purchases in 2020 and 2022. January 1, 2020, purchased 1,000 shares at $15 per share. January 1, 2022, purchased 8,000 shares at $18 per share. Sub Company had 15,000 shares of $10 par value common stock outstanding for the entire period. Dividends of 67000 were paid on December 31, 2022. The Parent Company uses the cost method to account for the investment. Any investment the Parent Company owns less than 20% is classified as available for sale securities.

The amount of dividend income the Parent Company recognizes in 2022 is 4670 Incorrect

The amount of realized gain reflected in the Parent's retained earnings would be____________.