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On January 1, Year 1, Peabody Co. purchased an investment for $400,000 that represented 30% of Newman Corp.s outstanding voting stock. For Year 1, Newman

On January 1, Year 1, Peabody Co. purchased an investment for $400,000 that represented\ 30% of Newman Corp.s outstanding voting stock. For Year 1, Newman reported net income\ of $60,000 and paid dividends of $20,000. At year end, the fair value of Peabodys\ investment in Newman was $410,000. Peabody elected the fair value option for this\ investment. What amount should Peabody recognize in net income for Year 1 attributable to\ the investment?

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