Net income for Uvalde Company for the current year was $370,000 and Uvalde paid cash dividends of $50,000. Mesquite Company holds 40 percent of the outstanding voting stock of Uvalde. However, another corporation holds the other 60 percent ownership and does not take Mesquites input into consideration when making financing and operating decisions for Uvalde. What investment income should Mesquite recognize for the current year?

Multiple Choice

• $20,000

• $128,000

• $0

• $148,000