For 2020, FNL Corporation reported $21,500 of Income on an Equity Method Investment. During the same year, FNL received $1,500 in dividends from this investment. Assuming the company uses the indirect method to prepare the Statement of Cash Flows, what is the net effect (adjustment to net income) of this investment when Net Income is adjusted to compute Cash Provided by Operating Activities?

Select one:

to. It will increase by $20,000.

b. It will decrease by $20,000.

c. $0. It has no effect.

d. It will increase by $1,500.