Answer:
$1,200,000
Explanation:
SOX Corporation purchased a 30% interest for $1,525,000
On November 1, 2021, Hack declared and paid $1,100,000 million in dividends
Hence, Carrying value = $1,525,000 - 30%($1,100,000)
Carrying value = $1,525,000 - $330,000
Carrying value = $1,195,000
Net loss given during the year reported by Hack is $4,000,000
Hence, Net Loss of SOX is $4,000,000 * 30%
Net Loss = $1,200,000
Therefore, the net loss to be recognized in the Income statement is $1,200,000
