Fraw Company owns 15% of the common stock of Trace Corporation and used the cost method to account for this investment. Trace reported net income of $110,000 for 2018 and paid dividends of $60,000 on October 1, 2018. How much income should Fraw recognize on this investment in 2018?

		$16,500
		$9,000
		$50,000
		$25,500.