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  3. on january 1 2016 halstead inc purchased 83000 shares of...

Question: on january 1 2016 halstead inc purchased 83000 shares of...

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On January 1, 2016, Halstead, Inc., purchased 83,000 shares of Sedgwick Company common stock for $1,529,000, giving Halstead 25 percent ownership and the ability to apply significant influence over Sedgwick. Any excess of cost over book value acquired was attributed solely to goodwill. Sedgwick reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years. Dividends are declared and paid in the same period. Annual Cash Dividends (paid quarterly) $124,000 144,000 177,000 Net Income 2016 357,000 2017 399,000 601,000 2018 On July 1, 2018, Halstead sells 12,500 shares of this investment for $23 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence. Determine the amounts that would appear on Halsteads 2018 income statement relating to its ownership and partial sale of its investment in Sedgwicks common stock. As total income accrual (no unearned gains) on sale of shares As

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