can someone please give detailed explanation

On July 1, Year 1, Denver Corp purchased 3,000 shares of Eagle Co 's 10,000 outstanding shares of common stock for $20 per share. On December 15, Year 1, Eagle paid $40,000 in dividends to its common stockholders: Eagle's net income for the year ended December 31, Year 1, was \$120,000, earned evenly throughout the year In its Year 1 income statement, what amount of income from this investment should Denver report? A. $36,000 B. $18,000 C. $12,000 D. $6,000 Louis, Inc. acquired 40% of the outstanding non-voting preferred stock of Rich Co. What method for recording the investment should Louis use? A. The equity method because significant influence must be assumed B. The equity method if no other investor has more than a 40% interest. C. The equity method if it can acquire an additional 11% by year-end D. The fair value method. A company has a 22% investment in another company that it accounts for using the equity method. Which of the following disclosures should be included in the company's annual financial statements? A. The names and ownership percentages of the other stockholders in the investee company B. The reason for the company's decision to invest in the investee company C. The company's accounting policy for the investment D. Whether the investee company is involved in any litigation