Masters Inc. acquired 30% of Continental Corp.'s voting shares on January 1, 2015 for $100,000. During 2015, Continental earned $40,000 and paid dividends of $25,000. Master's 30% interest in Continental gives Masters the ability to exercise significant influence over Continental's operating and financial policies. During 2016, Continental earned $50,000 and paid dividends of $15,000 on April 1 and $15,000 on October 1. On July 1, 2016, Masters sold half of its shares in Continental for $66,000 cash. Assume a December 31 year-end.
Calculate the amount, before income taxes that Masters should include in its 2015 income statement as a result of the investment.

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The Answer of Masters Inc. acquired 30% of Continental Corp.'s voting shares on January 1, 2015 for $100,000. During 2015, Continental earned $40,000 and paid dividends of $25,000. Master's 30% interest in Continental gives Masters the ability to exercise significant influence over Continental's operating and financial policies. During 2016, Continental earned $50,000 and paid dividends of $15,000 on April 1 and $15,000 on October 1. On July 1, 2016, Masters sold half of its shares in Continental for $66,000 cash. Assume a December 31 year-end.
Calculate the amount, before income taxes that Masters should include in its 2015 income statement as a result of the investment.