Apenhuizen acquires 20 percent of the outstanding voting shares of Bergweide on January 1, 2019, for 210,000 and applies the equity method in accounting for this investment. Bergweide has a book value of 900,000 at January 1, 2019, and records net income of 210,000 during 2019 and 230,000 in 2020. Bergweide declared and paid dividends of 100,000 in each of these years.

On the acquisition date the book values of Bergweides asset and liability accounts are considered as equal to fair values except for a copyright whose value accounted for Apenhuizens excess cost in the acquisition. The copyright had a remaining life of 15 years at January 1, 2019.

Only for question 3, assume that Apenhuizen sells inventory to Bergweide during 2019 and 2020 as follows:

Year	Cost to Apenhuizen	Price to Bergweide	Year-end balance (at transfer price)
2019	35,000	50,000	20,000
2020	33,000	60,000	40,000

The inventory at year-end balance will be sold in the following year

Question 3

What amount of equity income should Apenhuizen recognize for the year 2020?