On January 1, 2012, Berger Corporation paid $800,000 to purchase 40% of the outstanding stock of Oakley Company. Oakley Company reported net income of $200,000 for the year ending December 31, 2012 and paid cash dividends of $60,000 during 2012. On January 1, 2013, Berger Corporation sells its entire investment in Oakley Company for $1,100,000. Berger Corporation will report a(n):

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Berger Corporation's initial investment was $800,000. During 2012, Berger's share of Oakley's net income (40% of $200,000) is $80,000, and its share of dividends (40% of $60,000) is $24,000. The carrying amount of the investment at the end of 2012 is $800,000 + $80,000 - $24,000 = $856,000. Selling the investment for $1,100,000 results in a realized gain of $1,100,000 - $856,000 = $244,000.

On January 1, 2012, Berger Corporation Paid $800,000 to Purchase