Cayo Corporation paid $50,000 for a 10% interest in Lace Corp. on January 1, 2021, when Lace's stockholders' equity consisted of $400,000 of $10 par value common stock and $100,000 retained earnings. On December 31, 2022, Cayo paid $96,000 for an additional 20% interest in Lace Corp. Both of Cayo's investments were made when Lace's book values equaled their fair values. Lace's net income and dividends for 2021 and 2022 were as follows: 2021 2022 Net income $30,000 $70,000 Dividends $10,000 $20,000