Gaw Company purchased 15% of the common stock of Trace Corporation for $150,000 on 1/1/X1. At the time, Trace's equity included $500,000 of capital stock and $500,000 retained earnings. Gaw selected the fair-value method to account for this investment. On 12/31/X1, Trace's stock had a $1,200,000 total market value. Trace reported net income of $200,000 for year X1 and paid dividends of $60,000 on October 1, X1. How much income should Gaw recognize from its Trace investment in year X1?

$9,000

$15,000

$24,000

$39,000

None of the Above