7. On January 2, 2018, Howdy Doody Corporation purchased 10% of Ranger Corporation's common stock for $60,000. Ranger's net income for the years ended December 31, 2018 and 2019, were $50,000 and $100,000, respectively. During 2018, Ranger declared and paid a dividend of $50,000. There were no dividends in 2019. On December 31, 2018, the fair value of the Ranger stock owned by Howdy Doody had increased to $80,000. How much should Howdy Doody show in the 2018 income statement as income from this investment?

a. 20,000

b. 25,000

c. 30,000

d. 35,000

8. Assume that, on January 1, 2018, Matsui Co. paid $1,600,000 for its investment in 80,000 shares of Yankee Inc. Further, assume that Yankee has 200,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $4,000,000 at January 1, 2018. The following information pertains to Yankee during 2018:

Net Income	$	800,000
Dividends declared and paid	$	100,000
Market price of common stock on 12/31/2018	$	26/share

What amount would Matsui report in its year-end 2018 balance sheet for its investment in Yankee?

a. 1,880,000

b. 1,960,000

c. 2,080,000

d. 2,300,000