On January 2, 2017, Howdy Doody Corporation purchased 13% of Ranger Corporation's common stock for $57,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $12,000 and $52,000, respectively. During 2017, Ranger declared and paid a dividend of $60,500. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $72,000. How much should Howdy Doody show in the 2017 income statement as income from this investment?

rev: 12_08_2017_QC_CS-111689

• $21,000.

• $22,865.

• $15,000.

• $7,865.Incorrect