Sun, Inc. is a wholly owned subsidiary of Patton, Inc. On
June 1, year 1, Patton declared and paid a $1 per share cash dividend
to stockholders of record on May 15, year 1. On May 1,
year 1, Sun bought 10,000 shares of Patton’s common stock for $700,000 on the open market, when the book value per share was
$30. What amount of gain should Patton report from this transaction
in its consolidated income statement for the year ended
December 31, year 1?