23) Assume that Reed Company purchases 18,000 common shares of Aiello Company for $8 cash (3pts) per share. During the year, Reed receives a cash dividend of $0.90 per common share from Aiello, and the year-end market price of Aiello common stock is $9 per share. Reed Company classified the investment as trading securities. How much income does Reed report relating to this investment for the year? 18,000 $144,000 $145,800 $ 34,200 3pts) 24) Under the equity method, fair-value changes in the investee company's stock are not reflected in the investor's accounting records. True False 25) Frankfort Corporation purchases an investment in Bradley, Inc. at a purchase price of $9.8 million cash, (3pts) representing 40% (at book value) of Bradley. During the year, Bradley reports net income of $1,680,000 and pays $413,000 of cash dividends. At the end of the year, the market value of Frankfort's investment is $11.9 million What amount of equity earnings would be reported by Frankfort Corporation? $ 165,000 $ 672,000