Suppose on February 1, 2012, Fox Motors paid $450 million for a 40% investment in Regal Motors. Assume Regal earned net income of $65 million and paid cash dividends of $45 million during 2012. Assume

Suppose on February 1, 2012, Fox Motors paid $450 million for a 40% investment in Regal Motors. Assume Regal earned net income of $65 million and paid cash dividends of $45 million during 2012. Assume that in November 2012, Fox Motors sold half its investments in Regal Motors. The Sale price was $140 million.

Compute Fox Motors gain or Loss on the sale

Sale Proceeds-$145 million

Less:

Loss on the sale investment

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