Jabiru Corporation purchased a 20% interest in Fish Company common stock on January 1, 2002 for $300,000. This investment is accounted for using the complete equity method and the correct balance in the Investment in Fish account on December 31, 2004 is $440,000. The original excess purchase transaction included $60,000 for a patent amortized at a rate of $6,000 per year. In 2005, Fish Corporation has net income of $4,000 per month earned uniformly throughout the year and pays $20,000 of dividends in May. If Jabiru sells one-half of its investment in Fish on August 1, 2005 for $500,000, how much gain will be recognized on this transaction?
$278,950
$280,000
$280,950
$282,000
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