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n January 2 0 X 1 , Domingo, Inc., acquired 2 0 percent of the outstanding common stock of Martes, Inc., for $ 8 3

n January 20X1, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc., for $832,000. In 20X1, Martes reported net income of $254,000. Dividends of $100,000 were declared in 20X1. The fair value of Domingo's investment in Martes, as determined by market prices, was $847,000. Assume Domingo has significant influence over Martes, what amount of income from investment in Martes should Domingo report in year 20X1?
$35,000.
$15,000.
$20,000
$50,800.

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