Lee, Inc. acquired 30% of Polk Corp.'s voting stock on January 1, 2016 for $100,000. During 2016, 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 2017, Polk earned $50,000 and paid dividends of $15,000 on April 1 and $15,000 on October 1. On July 1, 2017, Lee sold half of its stock in Polk for $66,000 cash.

What should the gain on sale of this investment in Lee's 2017 Income Statement be?

$13,750

$12,250

$10,000

$16,000