Use the Following Information to Answer the Question(s) Below $$\begin{array} { | l | l | } \hline\text { Gain on Sale } & \text { Income from Brush } \\\hline\$ \$ 5,700 & \$ 59,400\\\hline\end{array}$$

Use the following information to answer the question(s) below.

Bird Corporation purchased an 80% interest in Brush Corporation on July 1, 2013 at its book value, and on January 1, 2014 its Investment in Brush account was $300,000, equal to its book value. Brush's net income for 2014 was $99,000 (earned uniformly) ; no dividends were declared. On March 1, 2014, Bird reduced its interest in Brush by selling a 20% interest, one-fourth of its investment, for $84,000.

-If Bird uses a "beginning-of-the-year" sale assumption,its gain on sale and income from Brush for 2014 will be

A) $$\begin{array} { | l | l | } \hline\text { Gain on Sale } & \text { Income from Brush } \\\hline\$ \$ 5,700 & \$ 59,400\\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Gain on Sale } & \text { Income from Brush } \\\hline\$ \$ 5,700 & \$ 62,700\\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline\text { Gain on Sale } & \text { Income from Brush } \\\hline\$ 9,000 & \$ 59,400\\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline\text { Gain on Sale } & \text { Income from Brush } \\\hline\$ 9,000 & \$ 62,700\\\hline\end{array}$$

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