a) increase net income by 63,000

b) increase net income by 60,000

c) increase net income by 3,000

d) no effect

Sports International purchased 1,500 shares of stock in The Gaming Warehouse for $40 per share. The investment is properly recorded using the equity method. By the end of the year, the stock price has increased to $42 per share. How would the change in stock price affect Sports International's net income under the equity method