On January 1, 20X2, Soho Co. purchased 4,000 shares, representing 12%, of Rico Inc., for $78,000. Soho is a publicly traded company. During the next two years, the following information was available for Rico.
$$\begin{array} { | l | r | r | r | }
\hline & \text { Net income (loss) } & \text { Dividends declared } & \begin{array} { c }
\text { Share price } \
\text { December } 31
\end{array} \
\hline 20X2 & \$ 65,000 & \$ 55,000 & \$ 22.20 \
\hline 20X3 & \$ 35,000 & \$ 10,000 & \$ 15.70 \
\hline
\end{array}$$ Soho sold all of its 4,000 shares in Rico on December 31, 20X3.
Required:

Question

On January 1, 20X2, Soho Co. purchased 4,000 shares, representing 12%, of Rico Inc., for $78,000. Soho is a publicly traded company. During the next two years, the following information was available for Rico.
 $$\begin{array} { | l | r | r | r | } 
\hline & \text { Net income (loss) } & \text { Dividends declared } & \begin{array} { c } 
\text { Share price } \
\text { December } 31
\end{array} \
\hline 20X2 & \$ 65,000 & \$ 55,000 & \$ 22.20 \
\hline 20X3 & \$ 35,000 & \$ 10,000 & \$ 15.70 \
\hline
\end{array}$$ Soho sold all of its 4,000 shares in Rico on December 31, 20X3.
Required:

Quizplus · Accepted Answer

The Answer of On January 1, 20X2, Soho Co. purchased 4,000 shares, representing 12%, of Rico Inc., for $78,000. Soho is a publicly traded company. During the next two years, the following information was available for Rico.
 $$\begin{array} { | l | r | r | r | } 
\hline & \text { Net income (loss) } & \text { Dividends declared } & \begin{array} { c } 
\text { Share price } \
\text { December } 31
\end{array} \
\hline 20X2 & \$ 65,000 & \$ 55,000 & \$ 22.20 \
\hline 20X3 & \$ 35,000 & \$ 10,000 & \$ 15.70 \
\hline
\end{array}$$ Soho sold all of its 4,000 shares in Rico on December 31, 20X3.
Required:

On January 1, 20X2, Soho Co Soho Sold All of Its 4,000 Shares in Rico on 12