Fizzy Inc. acquired 30 percent of the stock of Bracket Bottler at the beginning of 2023 for $3,000,000 and reports the investment using the equity method. When the investment was made, Bracket carried its net assets at $9,400,000. The basis difference was attributed entirely to intangible assets with a 10-year life. Bracket reported net income of $100,000 for 2023. What does Fizzy report as equity in net income for 2023?

Select one:

a. $24,600

b. $12,000

c. $30,000 (This is not the answer)

d. $15,000