Lee, Inc. acquired 30% of Polk Corp.'s voting stock on January 1 Year 1, for $100,000. During Year 1. Polk earned $40,000 and paid dividends of $25,000. Lee's 30% interest in Polk gives Lee the ability to exercise significant influence over Polk's operating and financial policies. During Year 2. Polk eamed $50,000 and paid dividends of $15,000 on April 1, and $15,000 October 1. On July 1, Year 2. Lee sold half its stock in Polk for $66,000 cash. Before income taxes, what amount should Lee include in its Year 1 income statement as a result of the investment? $40,000 $25,000 $12,000 $7,500