MC Qu. 16-45 On January 1, 2018, the Regal Company... On January 1, 2018, the Regal Company purchased 30% of the outstanding voting stock of the Air Corporation for $300,000; the book value of Air's net assets at the date of purchase was $900,000. Regal was willing to pay more than the book value of the acquired shares because Air's depreciable assets with a ten-year remaining life were undervalued. Regal uses straight-line depreciation. During 2018, Air reported net income of $75,000 and paid dividends of $30,000. Regal has elected the fair value option to account for equity method investments. The fair value of the Air investment as of December 31,2018 was $295,000. The income reported by Regal during 2018 pertaining to the Air investment was Multiple Choice $19,500 $9,000 $22,500 $4,000