On January 1, 2010, Mehan, Incorporated purchased 15,000 shares of Cook Company for $150,000 giving Mehan a 15% ownership of Cook. On January 1, 2011 Mehan purchased an additional 25,000 shares (25%) of Cook for $300,000. This last purchase gave Mehan the ability to apply significant influence over Cook. The book value of Cook on January 1, 2010, was $1,000,000. The book value of Cook on January 1, 2011, was $1,150,000. Any excess of cost over book value for this second transaction is assigned to a database and amortized over five years. Cook reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout the years: Net Income Dividends 2010 $200,000 $50,000 2011 225,000 50,000 2012 250,000 60,000 On April 1, 2012, just after its first dividend receipt, Mehan sells 10,000 shares of its investment. Questions:

How much income did Mehanreport from Cook during 2010????? a. 30000 b. 22500. c. 7500

How much income did Mehanreport from Cook during 2011????? a. 90000 b. 110000. c.87500