14 nts Phone Corporation owns 75 percent of Smart Company's common stock, acquired at underlying book value on January 1, 20X4. At the acquisition date, the book values and fair values of Smart's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 25 percent of the total book value of Smart. The income statements for Phone and Smart for 20X4 include the following amounts: Phone Corporation Smart Company Sales $528,000 eBook Dividend Income 9,000 Total Income $537,000 eferences Less: Cost of Goods Sold $380,000 Depreciation Expense 32,000 Other Expenses Total Expenses 66,000 $478,000 $150,000 $150,000 $ 87,000 20,000 23,000 $130,000 Net Income $ 59,000 $ 20,000 Phone uses the cost method in accounting for its ownership of Smart. Smart paid dividends of $12,000 in 20X4. Required: a. What amount would Phone report in its income statement as income from its investment in Smart if Phone used equity-method accounting? Amount of income $ 15,000